Paramount Skydance has secured the final legal approval for its acquisition of Warner Bros. Discovery after a federal judge in Oakland, California, entered a consent decree on Wednesday, September 30, 2026. Magistrate Judge Araceli Martinez-Olgun approved the agreement without modifications, ending nearly three months of antitrust scrutiny and clearing the path for a major entertainment conglomerate.
Court Approval Ends Antitrust Proceedings in California
The federal court’s decision officially resolves an antitrust lawsuit filed in early July 2026 by 12 state attorneys general, including those of California, New York and Massachusetts. The legal challenge previously threatened to stall the merger, prompting fears of a trial scheduled for March, whose outcome appeared uncertain. To settle the claims, Paramount Skydance agreed to a series of binding commitments aimed at protecting theatrical distribution and production investment. The settlement satisfies state prosecutors who had contested the transaction over risks of infringement of competition in the film and television sectors.
Production Commitments and Theatrical Mandates
Under the terms of the approved agreement, Paramount Skydance must increase its annual film production spending by $300 million. The combined entity is also mandated to release at least 30 new films theatrically each year during the first two years of the agreement, increasing to 32 films annually from the third through the fifth year. These releases carry an incompressible theatrical window of 45 days before arriving on video-on-demand platforms. If the company fails to meet these stipulations, it faces the penalty of selling off the Miramax studio, which holds rights to franchises like Scary Movie and Halloween.
Building a Streaming Competitor and Leadership Changes
The transaction unites two major Hollywood players that individually lacked the scale to compete against streaming leaders like Netflix and Disney. Warner Bros. Discovery brings the HBO Max streaming service, the Warner Bros. studio, franchises including Harry Potter, and cable networks like CNN and Discovery. Paramount Skydance already oversees the Paramount studio, CBS, Paramount+, and franchises such as Transformers, Mission: Impossible, and Star Trek.
Alongside the legal resolution, Paramount Skydance announced on Wednesday that Ynon Kreiz, until now head of Mattel, will serve as co-chief executive officer alongside David Ellison. Kreiz led Mattel’s recent turnaround by accelerating movie adaptations of toy properties, notably the Barbie film, which generated over $1.4 billion at the box office in 2023.
