A federal judge has approved the settlement between Democratic state attorneys general and Paramount Skydance, removing the final legal barrier to the merger between Paramount and Warner Bros. Discovery. Judge Araceli Martinez-Olguin ruled that the agreement was fair and reasonable, allowing the deal to move forward after already clearing government approvals. The settlement requires the merged company to produce a minimum number of films annually, with certain quotas for U.S.-based productions, and establishes oversight mechanisms to ensure editorial independence at CNN and CBS News.

The agreement obligates the new media entity to deliver 30 films per year for the first two years and 32 for the following three years, with heavy fines and possible divestiture of Miramax if unmet. It also demands a growing percentage of films be produced domestically and includes industry-specific quotas for tentpole and independent films. An independent editorial board will supervise journalistic standards at the broadcasting units, although critics argue the board’s composition, partly appointed by Paramount itself, raises concerns about true independence.

The settlement has faced criticism from outside film industry groups and figures like Senator Cory Booker, who believe it provides insufficient remedies to antitrust concerns. Opponents warn that allowing this consolidation without structural remedies risks job losses, reduced creativity, and weakened independent journalism. Despite these warnings, the judge emphasized that the deal represents a pragmatic compromise that avoids the costs and risks of prolonged litigation, noting that the court's role is limited in rejecting such negotiated settlements.

Paramount CEO David Ellison is expected to finalize the merger imminently, with a looming ticking fee of $7 million per day starting October 1 that Paramount owes Warner Bros. shareholders until the deal closes. The expanded media group’s new name is anticipated in the coming days. This ruling concludes months of legal battles, including an antitrust lawsuit and negotiations, paving the way for significant consolidation in the entertainment industry under Ellison's leadership, despite ongoing concerns about the merger’s broader impact.