A California federal judge has approved a settlement between Paramount Skydance Corp. and 12 state attorneys general, clearing a major legal hurdle for the company’s $110 billion acquisition of Warner Bros. Discovery Inc.
US District Judge Araceli Martínez-Olguín in Oakland approved the settlement in an order on Wednesday.
A group of Democratic state attorneys general, led by California, sued in July to block the proposed Hollywood merger, arguing against the combination of the two major media companies.
The states announced an agreement last week aimed at limiting the market power of the combined company. Under the settlement, Paramount pledged to release at least 30 films a year and establish editorial independence boards for its news organisations, CBS and CNN.
The approval comes as Paramount advances preparations to finance and complete the acquisition.
On Friday, the company announced it would delist from Nasdaq on October 5 and transfer its listing to the New York Stock Exchange the following day.
Paramount has also begun selling $44.4 billion in bonds as part of the financing package for the Warner Bros. deal. The package also includes $7.5 billion-equivalent in loans.
The case, California v. Paramount Skydance, 26-cv-7116, was filed in the US District Court for the Northern District of California in Oakland.
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