US court approves Paramount's Warner acquisition; Mattel's Kreiz to become co-CEO

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3▲2 ▼0Impact / 5
Summary · why it matters

A US federal court on the 30th issued an order approving the completion of US media giant Paramount's acquisition of Warner Bros., moving forward a deal that had been stalled for months. US District Judge Martinez-Orguin approved a settlement reached on September 21 with 12 states led by California. Under the settlement, the combined company must release at least 30 films in US theaters each year for five years and add 300 million dollars a year to its US production spending; if it fails to meet the release threshold, it could be forced to sell the distributor Miramax. The two companies also settled an antitrust lawsuit brought by the Writers Guild of America, agreeing to pay 17.5 million dollars into the union's health fund and to maintain union member employment levels at CBS News for five years. Paramount announced that Ynon Kreiz, CEO of US toy giant Mattel, will serve as co-CEO to lead the combined company; Kreiz will join on the 5th and become co-CEO alongside Chairman and CEO David Ellison when the acquisition closes, overseeing day-to-day operations and integration. The two companies said the acquisition is expected to be completed on the 6th.

Impact on assets 3

Communication Services▲
Paramount Skydance Corporation
PSKY
▲ PositiveRegulationrelevance

US federal court approves Paramount's acquisition of Warner Bros., clearing the regulatory/antitrust hurdle that had stalled the deal.

Warner Bros Discovery Inc
WBD
▲ PositiveRegulationrelevance

Court approval of the settlement clears the antitrust obstacles, allowing Warner Bros. Discovery to be acquired by Paramount.

Consumer Discretionary▲
Mattel Inc
MAT
± Mixedrelevance

Mattel CEO Ynon Kreiz named co-CEO of the combined Paramount-Warner company, a leadership change but no stated impact on Mattel's own business.

Off-coverage companies 1

Miramaxi
Private▼ NegativeRegulationrelevance

Under the settlement, the combined company could be forced to sell distributor Miramax if it fails to meet the 30-films-per-year theatrical release threshold.