Judge clears Paramount–Warner Bros $111bn merger to close

The $111 billion Paramount–Warner Bros. Discovery merger can now go ahead. U.S. District Judge Araceli Martínez-Olguín approved a settlement with 12 Democratic state attorneys general that resolves the antitrust challenge to the deal, the final legal barrier to closing, Variety reported.

Paramount has tentatively set Tuesday, Oct. 6 to close the merger, according to regulatory filings. The company had already secured clearance in 68 jurisdictions worldwide, including from the U.S. Justice Department. The approval finalises that regulatory run.

California Attorney General Rob Bonta led the states’ case. The coalition sued to block the takeover and won a temporary pause in July, followed by a July 24 “No-Close Order” that barred the companies from merging until five days after a ruling on the merits or until June 1, 2027. That order now falls away under the settlement, allowing the transaction to complete.

There are no forced sales. The consent decree, meaning a court-approved settlement, includes no structural remedies such as divestitures, meaning sell-offs of channels or business units.

Instead, Paramount agreed to spend at least an additional $1.5 billion on U.S. film production at the merged company, according to a statement from Bonta’s office. California Attorney General’s Office Any shortfall carries a $30 million penalty per film. The settlement also creates independent editorial boards for CNN and CBS, Reuters reported.

Before ruling, the judge addressed a request from Sen. Cory Booker for an independent public-interest review of the settlement. Judge Martínez-Olguín asked the parties to submit replies to that request.

The deal itself was structured as a $30-per-share all-cash tender offer for Warner Bros. Discovery. It was unanimously approved by both companies’ boards of directors. Paramount said at the time it expected the purchase to close in the third quarter of 2026, subject to customary closing conditions.

What makes this stand out is scale. One company would run two large film and television operations. That decides schedules, jobs in crews and writers’ rooms, and which stories get finished.