Paramount and Warner Bros. merger is a go after Judge approves settlement
Article excerpt
The $111 billion merger between Paramount and Warner Bros. Discovery has overcome its final hurdle as U.S. District Judge Araceli Martínez-Olguín has approved the settlement between Paramount and a group of State Attorneys General who had sued to block the merger. Paramount has tentatively set October 6 as the date to close the merger. “ The Court finds the proposed consent decree represents a reasonable factual and legal resolution of the dispute, ” wrote U.S. District Judge Araceli Martínez-Olguín today in her order. “ The parties reached their agreement following highly contested, however brief, litigation, and they reached their agreement following what they report to have been several rounds of in-depth negotiations. “ When the deal closes, it’s expected that Warner Bros. Discovery CEO David Zaslav will depart, but he won’t be leaving empty-handed. He stands to earn more than $550 million in stock and cash, which includes $34.2 million in cash severance payments. According to the terms of the settlement, the newly merged Paramount-Warner Bros. Discovery will be prohibited from selling either the Paramount Studios or Warner Bros. lots in California for at least five years. It’s also obligated to invest at least an additional $300 million on film production in the U.S. annually. It must also release at least 30 theatrical movies in the first two years, which shouldn’t be...
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Former Mattel CEO Ynon Kreiz has been announced as Co-CEO of the merged company.
