A federal judge has approved a settlement that allows Paramount Skydance to acquire Warner Bros. Discovery for $110 billion, overcoming a major legal challenge from twelve state attorneys general. The acquisition price is set at $31 per share, with the deal expected to close on October 6, 2026. The merged company will combine major film studios, cable networks, and streaming services under one roof, creating a dominant player in the entertainment industry controlling Paramount, Warner Bros., HBO and HBO Max, Paramount+, CBS, CNN, and others.

The court’s approval came despite significant opposition from merger critics who contended the consent decree lacked traditional structural remedies such as divestitures. Judge Araceli Martínez-Olguín acknowledged that the settlement was a compromise and might leave some dissatisfied but cited the avoidance of lengthy, costly litigation as a deciding factor. The settlement includes commitments requiring the new company to increase U.S. production spending by $1.5 billion over five years and maintain a minimum number of theatrical releases annually. Additionally, it mandates an independent News Editorial Independence Board overseeing CBS News and CNN operations.

Critics, including groups like the Block the Merger coalition, strongly opposed the decision, warning that the merger could harm consumer choice, creativity, independent journalism, and First Amendment rights. They argued the approval allows corporate consolidation to outweigh public interest, threatening jobs and media diversity. Despite their disappointment, opposition groups see the merger controversy as energizing a wider movement for media policy reform and have pledged to continue advocating for consumer and creative protections in the industry.

Paramount is preparing for the post-merger phase by marketing a $44 billion bond to help finance the deal, backed by equity commitments from Larry Ellison and sovereign wealth funds from Saudi Arabia, Qatar, and the UAE. Leadership changes include the appointment of Ynon Kreiz, former Mattel CEO, as co-CEO alongside David Ellison, with Kreiz focusing on operations and integration. The merger marks the end of David Zaslav’s tenure as Warner Bros. Discovery CEO and initiates a new era of consolidation and transformation for Hollywood’s entertainment landscape.