Sept 30 (Reuters) – A US judge entered an order on Wednesday that allows Paramount to close its acquisition of Warner Bros, ending a months-long holdup for the $110 billion transaction.
US District Court Judge Araceli Martínez-Olguín approved a settlement between the companies and a California-led group of states that had alleged the deal would harm competition in film and television.
The settlement on September 21 paved the way for one of the largest media mergers in history. The group of 12 states had sought to block the merger in court, saying it would create a media behemoth with the power to raise prices in film and television.
The five-year agreement requires Paramount to adhere to theatrical film release quotas and keep negotiations with cable providers for Warner-owned channels separate.
The settlement drew strong objections from groups opposed to the merger, some of whom filed letters urging the court to deny the settlement.
“These hopes and desires for the proposed consent decree to reach farther – to achieve more – do not rise to the level of legal violations upon which the court can reject the parties’ negotiated resolution,” Martínez-Olguín said in her order.
Paramount also agreed to establish an editorial board to ensure independence at the CBS and CNN networks.
Martínez-Olguín on Wednesday called the deal a “reasonable factual and legal resolution,” rejecting arguments that the editorial board would violate the First Amendment.
Separately, Paramount announced on Wednesday that Mattel’s longtime CEO Ynon Kreiz will become the co-CEO of the firm, effective at closing of the Warner Bros acquisition.
Kreiz led the toymaker’s transformation into a broader entertainment company. His push to turn Mattel’s intellectual property into films, television shows and digital games delivered the global box-office hit “Barbie” and boosted demand for its merchandise.
(Reporting by Jody Godoy, additional reporting by Arasu Kannagi Basil; Editing by Franklin Paul and David Gaffen)
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