California judge approves settlement allowing Paramount to acquire Warner Bros. Discovery

California Judge Araceli Martinez-Olguin has issued an order allowing Paramount to complete its acquisition of Warner Bros. Martinez-Olguin approved a settlement that Paramount reached with California and eleven other US states. Paramount Skydance can now complete the takeover of the film and media group Warner Bros. Discovery (WBD).

The last hurdle was the lawsuit filed by twelve US states. They had argued that the merger of the two film and television giants would lead to "higher prices, lower quality and less content" for audiences.

The agreement reached on September 21st is valid for five years. Paramount must commit to fixed quotas for theatrical releases and negotiate separately with cable providers about the channels belonging to Warner. Martínez-Olguín described the agreement as “an appropriate solution in fact and law.”

Business worth around $111 billion

The US government had already approved the takeover in June without any conditions. The Justice Department said the merger would “not be expected to harm competition or American consumers.” Paramount and Warner Bros. signed the agreement at the end of February after the streaming service Netflix withdrew from the bidding dispute. At the end of April, the shareholders also agreed.