A federal judge in Oakland ruled that Paramount Skydance Chief Executive David Ellison’s Warner Bros. It approved a deal that allowed it to complete its $111 billion acquisition of Discovery.
Ellison aims to complete the merger by next week and complete his rise to become one of Hollywood’s most influential figures. The Ellison family acquired Paramount and CBS last year and will now add the film and television studio, which owns HBO, CNN, TBS, HGTV and the rights to Batman, Harry Potter, Fred Flintstone, “Friends” and “The Pitt” to its expanding media and entertainment portfolio.
His father, Larry Ellison, owns the company Oracle Corp. It also has a significant share in the social media application TikTok and is among the technology giants that support the development of artificial intelligence.
The settlement agreement, spanning five years, requires Paramount-Warner Bros. to release 30 films theatrically each year, allocate an additional $1.5 billion to domestic film production and set aside $47.5 million for workers who may be adversely affected by the merger. There are calls for a five-member panel to oversee the editorial independence of CBS News and CNN, but critics say the Ellisons’ control board appointments diminish their independence.
The agreement, known as a consent decree, also includes Paramount’s plans to expand its Melrose Avenue campus in Hollywood or the larger Warner Bros. headquarters in Burbank. It also stipulates that it will not sell or close its land. The merged company must instead operate the historic facilities “in a manner consistent with past practices” for at least five years. An independent monitor is expected to oversee implementation of the terms of the settlement.
Paramount will also face restrictions on how it can use its influence during negotiations over distribution of basic cable TV channels.
The merger was not well received in Hollywood, and critics called the deal weak. Opponents blamed California Attorney. Gen. Rob Bonta, who is leading negotiations with Paramount, bowed to political pressure from Gov. Gavin Newsom and Los Angeles Mayor Karen Bass, who publicly urged Bonta to abandon his court fight in favor of settlement talks.