Paramount closes €94 billion Warner Bros. Discovery takeover as Supreme Court rejects last appeal
Paramount completed its acquisition of Warner Bros. Discovery on Tuesday, creating a media group called Skydance that combines two major studios and nearly a third of US basic-cable programming, CNBC reports. The Supreme Court rejected a last-minute bid to stop the deal, clearing its final immediate obstacle after Paramount settled a separate antitrust case with 12 US states. The EU approved the merger in July with conditions on European film distribution.
Bottom line — Skydance begins with film-release commitments, editorial safeguards and a European pledge to avoid Universal distribution deals for 10 years.
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CNBC values the deal at about €94 billion ($110 billion) on an enterprise basis.
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The EU’s July approval required Paramount to sell its stake in United International Pictures and avoid film distribution deals with Universal in Europe for 10 years, CNBC reports.
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Under the US states’ settlement, the combined company must release at least 30 films annually for its first two years, then 32 for the next three, The Hollywood Reporter reports.
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The settlement also requires at least €1.3 billion ($1.5 billion) in domestic film production spending, according to the Washington Sun.
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The agreement establishes an independent board to oversee editorial standards at CNN and CBS News; Mark Thompson will continue to lead CNN, CNBC reports.
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Five consumers asked the Supreme Court to freeze the deal while it considered their case; Justice Elena Kagan denied the emergency appeal without comment, the Washington Sun reports.
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Paramount has projected more than €5.1 billion ($6 billion) in savings and about €67 billion ($79 billion) in net debt, the Washington Sun reports.