Key facts
- A U.S. judge approved a settlement allowing Paramount to close its acquisition of Warner Bros.
- The deal is valued at $110 billion.
- The settlement resolves allegations that the merger would harm competition in film and television.
- A group of states, led by California, had raised antitrust concerns.
- The judge's order ends a months-long holdup for the transaction.
A U.S. judge has approved a settlement that allows Paramount to proceed with its $110 billion acquisition of Warner Bros. Discovery, ending a significant legal hurdle for the transaction. The order, entered on Wednesday, resolves concerns raised by a coalition of states that had alleged the merger would harm competition in the film and television industry.
U.S. District Court Judge Araceli Martínez-Olguín's decision follows a period of uncertainty that had paused the deal. Previously, a temporary restraining order had halted the acquisition until at least August 3, 2026, as a group of 12 state attorneys general, led by California, argued that the merger could cause irreversible harm to the media industry and consumers. They contended that the deal would substantially lessen competition in areas such as cable television programming and theatrical picture distribution.
Adding to the legal challenges, the Writers Guild of America also filed a lawsuit, claiming the merger would lead to reduced compensation and less favorable deal terms for writers. Paramount had urged for an evidentiary hearing to address factual issues related to market definition and competitive dynamics, while the states opposed the extended hearing, arguing it was not appropriate at the preliminary injunction stage. The original deadline for the deal to close was September 30, with a ticking fee of $6.9 million per day if the transaction was not completed by that date.