California permits Paramount and Warner to move forward with their merger agreement

A California state judge approved an agreement reached with twelve U.S. attorneys general on Wednesday. Clearing the final hurdle for the controversial merger between Paramount and Warner Bros. Discovery (WBD); the deal is now set for October 6 following intense litigation.

The settlement negotiated on September 21 to end the legal battle was approved by U.S. District Judge Araceli Martínez-Olguín, who is in charge of the antitrust litigation intended to prevent the merger between Paramount and WBD.

In an effort to stop the merger of two of Hollywood’s biggest studios, a dozen attorneys general, led by California’s Rob Bonta, filed an antitrust case in late July, which both sides agreed to settle.

Case claims that the states rejected the merger because it would increase market concentration in the basic cable TV channel sector and give the combined corporation over 30% of the major blockbuster segment and over 27% of the film distribution market.

The deal’s conclusion is tentatively set for next Tuesday by the media giant.

Merger between Paramount and WBD, agreed on February 27, has encountered considerable criticism and legal challenges. It connects two of Hollywood’s five historic major studios. Thereby decreasing competition in the film and cable TV industries—and combines platforms such as HBO Max and Paramount+.

After threatening to leave California and asking that the plaintiff states deposit a $1.9 billion bond. Citing damages from the merger delay, Paramount has pressed for talks.

The conglomerate agreed to invest $1.5 billion in Hollywood film production over the next five years and release thirty pictures in theaters each year, failing which it would be subject to penalties under the terms of the deal with the twelve attorneys general.

In addition, an editorial independence board must be established to safeguard the continued editorial autonomy of CBS News and CNN.