Paramount Wins Court Approval for $110B Warner Takeover; Mattel's Kreiz to Share CEO Role

• U.S. District Judge Araceli Martínez-Olguín approved a settlement resolving an opposition lawsuit brought by 12 state attorneys general.
• Former Mattel CEO Ynon Kreiz will join David Ellison as co-CEO of the combined entity, while Warner Bros. streaming head Casey Bloys is expected to assume control of both Paramount+ and HBO Max. 
• Paramount plans to close the acquisition on Oct. 6, supported by $44.4 billion in bond offerings and $7.5 billion in loans.

A California federal judge cleared the path for Paramount Skydance Corp. (PSKY) to complete its $110 billion acquisition of Warner Bros. Discovery Inc. (WBD) on Wednesday, approving a settlement that resolves a state-led antitrust lawsuit.

U.S. District Judge Araceli Martínez-Olguín of the U.S. District Court in Oakland approved an agreement between Paramount and a group of 12 state attorneys general. The group of state officials, led by California, originally sued in July to prevent the entertainment consolidation, citing market competition concerns.

To satisfy the terms of the court-approved settlement, Paramount pledged to maintain an annual theatrical output of at least 30 films. Additionally, the company agreed to institute editorial independence boards for news organizations under its banner, including CBS and CNN.

Sources familiar with the matter told Bloomberg the merger is targeted to finalize on Oct. 6.

PSKY stock jumped 3.2% on Wednesday, and WBD rose about 0.3%.

Kreiz Appointed Co-CEO Alongside Ellison

Following the legal approval, Paramount Skydance Chairman David Ellison announced that former Mattel Inc. Chief Executive Ynon Kreiz will serve as co-CEO of the combined conglomerate once the transaction concludes.

"In Ynon, I'm adding a partner with strong leadership and the operating firepower this integration demands," Ellison stated Wednesday.

Under the leadership arrangement, company executives will report to both Ellison and Kreiz. The appointment fills an executive void created by the April departure of former Paramount President Jeff Shell.

Kreiz, who oversaw Mattel’s blockbuster film partnership with Warner Bros. for 2023’s $1.4 billion hit Barbie, brings extensive television and production experience to the role. He previously held top executive roles at Maker Studios, Endemol Group, and Fox Kids Europe. 

Further leadership shifts are anticipated across the enterprise. Warner Bros. streaming chief Casey Bloys is set to assume control over combined streaming operations—including Paramount+ and HBO Max—following the departure of Paramount streaming chief Cindy Holland.

Financing and NYSE Listing

As part of its financial preparations for the mega-merger, Paramount has begun raising funds through a $44.4 billion bond sale and a $7.5 billion loan package. The company is also seeking additional outside equity to help fund the takeover.

In conjunction with the transaction closing, Paramount announced it will delist its shares from the Nasdaq exchange on Oct. 5 and begin trading on the New York Stock Exchange on Oct. 6.

PSKY, WBD Stock: Retail View 

Retail sentiment on Stocktwits was ‘bullish’ with ‘normal’ message volumes on both PSKY and WBD stock.

PSKY stock has lost about 23% year-to-date, while WBD gained 7.5% during the same period. 

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