A US federal judge has entered an order allowing Paramount to close its $110 billion acquisition of Warner Bros, ending a months-long legal holdup for one of the largest media mergers in history.
In the order issued on Wednesday, US District Court Judge Araceli Martínez-Olguín approved a September 21 settlement between the companies and a California-led group of 12 states that had sued to block the deal, arguing it would create a media giant capable of raising prices in film and television.
Five-year commitments
The five-year agreement requires Paramount to adhere to theatrical film release quotas and to keep negotiations with cable providers for Warner-owned channels separate from its own channels. Paramount also agreed to establish an editorial board to ensure the independence of the CBS and CNN news networks.
The settlement drew strong objections from groups opposed to the merger, some of which urged the court to reject it. The judge rejected those arguments, writing that the objectors' hopes for the decree "to achieve more — do not rise to the level of legal violations" that would justify rejecting the negotiated resolution. She called the deal a "reasonable factual and legal resolution" and dismissed claims that the editorial board would violate the First Amendment.
New co-CEO named
Separately on Wednesday, Paramount announced that Mattel's longtime CEO Ynon Kreiz will become co-CEO of the combined firm, effective at the closing of the Warner Bros acquisition. Kreiz led the toymaker's transformation into a broader entertainment company, a push that delivered the global box-office hit Barbie and boosted demand for its merchandise. The companies said the deal is expected to close on October 6, according to Reuters-based industry reporting.
Sources: US judge allows Paramount to close Warner Bros acquisition — Business Times; Paramount gets court green light on Warner Bros deal — SRN News
In the order issued on Wednesday, US District Court Judge Araceli Martínez-Olguín approved a September 21 settlement between the companies and a California-led group of 12 states that had sued to block the deal, arguing it would create a media giant capable of raising prices in film and television.
Five-year commitments
The five-year agreement requires Paramount to adhere to theatrical film release quotas and to keep negotiations with cable providers for Warner-owned channels separate from its own channels. Paramount also agreed to establish an editorial board to ensure the independence of the CBS and CNN news networks.
The settlement drew strong objections from groups opposed to the merger, some of which urged the court to reject it. The judge rejected those arguments, writing that the objectors' hopes for the decree "to achieve more — do not rise to the level of legal violations" that would justify rejecting the negotiated resolution. She called the deal a "reasonable factual and legal resolution" and dismissed claims that the editorial board would violate the First Amendment.
New co-CEO named
Separately on Wednesday, Paramount announced that Mattel's longtime CEO Ynon Kreiz will become co-CEO of the combined firm, effective at the closing of the Warner Bros acquisition. Kreiz led the toymaker's transformation into a broader entertainment company, a push that delivered the global box-office hit Barbie and boosted demand for its merchandise. The companies said the deal is expected to close on October 6, according to Reuters-based industry reporting.
Sources: US judge allows Paramount to close Warner Bros acquisition — Business Times; Paramount gets court green light on Warner Bros deal — SRN News
