Overview
- U.S. District Judge Araceli Martínez‑Olguín approved the consent decree on Wednesday, Sept. 30, clearing the last state‑led legal barrier to Paramount Skydance’s planned acquisition of Warner Bros. Discovery.
- The settlement requires the combined company to release at least 30 theatrical films a year for the first two years and 32 films a year for the next three, and to spend $1.5 billion on U.S. production over five years.
- Enforcement tools include a $30 million penalty for each missed theatrical release, a compliance monitor, a monitoring trustee, and backstops that can trigger forced divestitures such as a 49% Miramax stake or specified cable channels.
- The decree creates a five‑member editorial oversight board for CNN and CBS News whose members are to be appointed by the combined company, a feature critics and lawmakers say leaves newsroom independence vulnerable.
- Paramount has lining up financing and leadership moves to close quickly, including a large equity guarantee from Larry Ellison, sovereign fund commitments and the announced hire of Ynon Kreiz as co‑CEO, while unions, advocacy groups and some officials warn the five‑year terms may not prevent layoffs or long‑term market consolidation.