UPDATE: Ynon Kreiz, the former CEO of Mattel, has been named Co-CEO of the combined WarnerMount alongside David Ellison, the company announced on Wednesday following the news of the final hurdle clearing.
As Chairman & CEO, Ellison will lead all strategy, creative and technology while Kreiz, as Co-CEO will oversee day-to-day operations and integration of the combined businesses.
Original Story: The Paramount and Warner Bros. Discovery merger has cleared its final hurdle as a judge has approved the settlement agreement over the states’ antitrust lawsuit, paving the way for the merger to close its deal and become official as early as next week. The merger will combine two juggernaut, historic, legacy Hollywood film studios under one roof as part of a $111 billion transaction, the largest media deal in history.
Judge Araceli Martínez-Olguín wrote in a court order on Wednesday that “the proposed consent decree represents a reasonable factual and legal resolution of the dispute” and “reflects a procedurally sound resolution.” She also said 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.”
The deal is now expected to close on October 6, per Paramount’s regulatory filings.
Getting over this final hurdle comes after months of delays, including the major antitrust lawsuit from a coalition of 12 states, and even a Hail Mary last ditch amicus brief from a grassroots coalition that sought to block the merger entirely. It even follows a lengthy period in which Netflix, not Paramount, had won the rights to acquire Warner Bros. Discovery’s film studio before Paramount muscled in with a bigger deal that WBD leadership could not ignore.
Soon to be all under the purview of one company: Paramount Pictures and Warner Bros. Pictures, streaming services HBO Max and Paramount+, news networks CBS News and CNN, cable channels including HGTV, Food Network, TNT, TBS, and Discovery combined with MTV, VH1, Comedy Central, and Paramount Network, broadcast network CBS along with premium cable juggernaut HBO, sports rights for the NFL, UFC, NCAA Basketball, MLB, and more, two studio lots in Hollywood and Burbank, and franchise IP like Harry Potter, “Lord of the Rings,” and DC Comics married with “Top Gun,” “Mission: Impossible,” “Sonic the Hedgehog,” “Transformers,” and so much more.
Paramount will come into the combined company with $80 billion in debt, which it will aggressively be working to bring down through cost-saving measures, all while Ellison has promised to remain in California, avoid layoffs, and continue to release 30 movies annually between the two film studios.
Following a lawsuit brought by 12 state attorneys generals and led by California AG Rob Bonta, Paramount on September 21 settled the lawsuit by agreeing to consent decrees over a period of five years. The terms of the settlement require Paramount to pay penalties if it fails to release 30 to 32 movies per year as it has promised, to divest from its ownership of film studio Miramax, and to commit to invest $300 million annually to production in the United States.
Paramount has maintained that it needs this level of size in order to compete with the likes of tech giants like Amazon, Apple, and Netflix that have all taken over the entertainment sphere, as well as YouTube, which continues to be the dominant source in which people spend most of their viewing hours. It will aim to do that with its connections with talent like Tom Cruise, James Cameron, Damien Chazelle, and many more.
A combined WarnerMount C-suite is also beginning to take shape, even as many questions still remain as to who stays and who goes. Cindy Holland, who led Paramount’s streaming division, exited yesterday, paving the way for HBO chief Casey Bloys to take the reins.
Kreiz is stepping down from Mattel after eight years with the company that saw him bring “Barbie” to Warner Bros.
Ellison said in a statement of Kreiz: “Bringing together Paramount and Warner Bros. Discovery to create a next-generation global media company is a transformational moment for our industry. Leading it takes a rare combination of strategic vision, operational depth and experience running a public company at the highest levels of media. Ynon brings all three. In Ynon, I’m adding a partner with strong leadership and the operating firepower this integration demands. It’s a division of labor built on our complementary strengths, with clear reporting lines and it lets me focus where I can contribute most: long-term strategy, the company’s overall creative direction, talent relationships, strategic partnerships, technology and capital allocation. We’re like-minded, we see this business the same way and there’s no one I’d rather partner with. Together we’ll build one integrated company that is creator-first, tech-forward and built to scale globally.”
“I’m excited to partner with David to build the next-generation media and entertainment company — bringing together premium content and iconic brands at the highest quality and scale, serving global audiences across every entertainment vertical and distribution platform,” Kreiz added. “David is a unique talent and executive: a rare blend of business acumen, creative instinct, and clear vision. I very much share that vision, and I’m inspired by what we can accomplish together. The industry is at an inflection point, demanding evolution, investment, and a willingness to rethink business models. I look forward to working with the leadership team to build a cohesive global entertainment platform — one that stands out with best-in-class operations and execution powered by technology, with unparalleled creative relationships, production capabilities, and global reach. We will continue empowering creators, make this company a greenfield for innovation and storytelling, and collaborate with key partners to reach and engage fans worldwide.”