U.S. judge accepts Paramount’s Warner Bros. buyout settlement

Deal with dissenting American states clears way for media company's massive takeover of Warner Bros. Discovery

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Published Sep 30, 2026  •  2 minute read

Mattel CEO Ynon Kreiz will become co-CEO of merged company. Photo by Frederic J. Brown /AFP

LOS ANGELES — A federal judge on Wednesday approved a settlement between Paramount and a group of U.S. states that clears the way for its takeover of Warner Bros. Discovery, creating a Hollywood empire spanning television, news and cinema.

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Judge Araceli Martinez-Olguin of California signed the consent decree, binding the concessions that Paramount offered to end an antitrust challenge brought by 12 states. The commitments run for five years and the court will have the power to enforce them.

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Paramount, which is run by David Ellison, whose ultra-wealthy family has ties to U.S. President Donald Trump, won a bidding war against Netflix in February for control of a stable of assets that includes Warner Bros. Pictures, CNN and the HBO Max streaming service.

The same day, Ellison named Mattel chief executive Ynon Kreiz as co-CEO of the combined company once the merger closes.

Ellison will stay on as chairman and CEO, focusing on strategy, creative direction and technology, while Kreiz will handle day-to-day operations and the integration of the two businesses, the company said.

“Bringing together Paramount and Warner Bros. Discovery to create a next-generation global media company is a transformational moment for our industry,” Ellison said in a statement.

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“In Ynon, I’m adding a partner with strong leadership and the operating firepower this integration demands,” he added.

Kreiz, who has led Mattel since 2018 and oversaw its move into film with the 2023 blockbuster Barbie, will join Paramount on Monday and take a seat on the board at closing.

The Trump administration approved the deal, one of the largest media mergers ever, in June without demanding a change to its business before 12 U.S. states sued to block the transaction.

Financing for the deal reportedly includes about $24 billion in equity from the sovereign wealth funds of Saudi Arabia, Qatar and Abu Dhabi.

Ellison’s father, billionaire Oracle founder Larry Ellison, provided major funding and a guarantee to lenders backing the deal.

Opponents in the movie industry said the combined company would slash jobs in a Hollywood already under pressure and reduce the number of films produced every year, while news media groups feared CNN’s independence could be compromised.

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The decree includes several safeguards on these issues, including a board meant to protect CNN’s editorial independence.

The settlement was reached by the parties on Sept. 21 and was awaiting the judge’s approval. Paramount had threatened to move out of California if the state’s attorney general, Rob Bonta, did not end the lawsuit.

The decree commits the merged studio to release 30 movies in each of the first two years of the deal and 32 in each of the following three years.

It came just days after Trump banned CNN, Politico and MS NOW from the White House. The outlets successfully sued the administration to have the decision reversed.

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