Breakdown of Paramount’s $110 billion Warner Bros. Discovery deal

A new update has come in on Paramount's $110 billion deal to acquire Warner Bros. Discovery, with a California judge now approving the agreement, as reported by NBC News. The judge approved the settlement on Wednesday, allowing Paramount Skydance to continue with the deal.

Additionally, David Ellison announced that Ynon Kreiz will become co-CEO of the combined Paramount and Warner Bros. Discovery company once the deal closes. According to CBS News, the deal is expected to close on October 6, with Kreiz joining the company a day earlier on October 5.

However, the deal has a long history behind it, with Paramount and Netflix both making bids for Warner Bros. Discovery before Paramount's offer moved forward. Let's take a look at the final milestones and what to know now that the merger has been approved.

Paramount's $110 billion Warner Bros. Discovery deal breakdown: Everything to know

1) Closing date is locked in

According to CBS News, the merger is on track to officially close on October 6, which is just five days away. The date has been confirmed after months of delays and waiting, following the merger's clearance of its final hurdle.

2) The final legal obstacle is cleared

On Wednesday, a California judge, Martínez-Olguín, approved the settlement, which has just removed the last and biggest legal barrier that was stopping the deal. The deal had already received regulatory approval in sixty-eight jurisdictions, including clearance from the U.S. Department of Justice, as reported by Variety.

3) Streaming gets a new leader

There is also a big change coming for the companies' streaming business. Casey Bloys, who is Chairman and Chief Executive Officer of HBO, is expected to take charge of the combined streaming operation. In September, The Hollywood Reporter reported that Cindy Holland, Paramount's direct-to-consumer chief, would be leaving the company as part of the Warner Bros. Discovery deal. As of now, she has already left the company.

At the same time, WBD CEO David Zaslav is expected to leave his position once the deal is completed, as reported by Variety.

4) New leadership

As confirmed, Mattel CEO Ynon Kreiz will serve as co-CEO of the combined company alongside David Ellison. This represents a new leadership strategy, where Ellison will take care of "all strategy, creative and technology," and Kreiz will look after the "company's day-to-day operations and integration of the combined businesses," as per the statement reported by CBS News.

5) The roster contains a big content library

Once completed, the merger will bring Paramount Pictures and Warner Bros. together, along with the HBO Max and Paramount+ streaming services. Other platforms include CBS, MTV, CNN, Food Network, TBS, Comedy Central, and more.

Additionally, it will bring popular franchises, including Harry Potter, Mission: Impossible, Game of Thrones, DC, Yellowstone, Top Gun, and Nickelodeon, under the same company, according to Variety.

6) Editorial safeguards

The deal also includes a new rule to protect the editorial independence of CNN and CBS News. As reported by Variety, a special board will keep an eye on this and set "guiding editorial and journalism principles" for how the two news outlets handle their news coverage under the new deal.

7) Financial backing

The new deal also has some big financial backing behind it. Larry Ellison, David Ellison's father and Oracle founder, has guaranteed $46.7 billion in funding, as reported by Variety. Sovereign wealth funds from Qatar, the United Arab Emirates, and Saudi Arabia have committed another $24 billion to help fund the takeover.

Together, the three Middle Eastern funds are expected to hold a 38.5% stake, according to Variety.

8) Five-year studio rule and movie release numbers

The Paramount and Warner Bros. Discovery deal also comes with a five-year rule that states that both parties, Paramount and Warner Bros., cannot sell their studio properties. In other words, both studio lots will stay protected under this rule for at least five years after the deal.

Another term of the settlement, as reported by Variety, requires the new company to invest at least an additional $300 million in U.S. film production every year. There are also several numerical requirements involved. According to Variety, as per the terms of the new deal, the company will have to release at least 30 films each year for the first two years. Then, at least thirty-two movies each year for the next three years, with big theatrical releases staying in theaters for at least forty-five days.

9) The deal does not require asset sales

Earlier, California Attorney General Rob Bonta had pushed for Paramount and Warner Bros. to sell or separate some of their major assets. However, now they will not be forced to sell or split up any of their big businesses or assets.