• by Wendy Davis , Yesterday

A federal judge on Wednesday entered an order allowing Paramount Skydance to complete its $110 billion acquisition of Warner Bros. Discovery, provided the company follows conditions aimed at resolving concerns that the merger could harm competition.

The conditions, spelled out in a 32-page agreement between the company and 12 states that had challenged the merger, include a requirement that Paramount produce and distribute at least 30 films a year for the first two years after the merger and 32 films a year for the following three years.

Also, for five years following the merger, the company must negotiate licensing fees for Paramount "basic" cable and Warner Bros. "basic" cable separately. Paramount additionally will create an editorial board of independent journalists who will establish editorial principles based on existing policies at CBS News and CNN, and resolve disputes between the news side of those companies and Paramount management.

The states and Paramount said last week they had reached a settlement, but it wasn't approved by the court until Wednesday.

The deal "reflects a procedurally sound resolution" of the states' lawsuit, U.S. District Court Judge Araceli Martinez-Olguin in the Northern District of California wrote in an order okaying the deal.

Warner Bros. agreed in March to be acquired by Paramount, which is controlled by Trump allies Larry Ellison and his son David Ellison.

The U.S. Department of Justice approved the merger in June, but a California-led coalition of 12 states sued in July to block the deal, alleging it would violate antitrust law by eliminating competition between Paramount and Warner Bros.

The states claimed the merger would leave the country with just four major film distributors, and that a combined Paramount-Warner Bros. would control more than 30% of "anticipated blockbusters" -- meaning big-budget films likely to earn more than $100 million in box-office revenue.

Advocacy group Free Press, which opposed the merger, said Wednesday it was disappointed by the judge's decision.

"Dangerous mega-mergers like this demonstrate the urgent need to enforce the antitrust laws instead of caving in," Free Press co-CEO Jessica Gonzalez stated.

"The joining of massive entities like Paramount and Warner Bros. will hike consumer prices," she added. "It will harm media diversity in all dimensions, and further homogenize the types of television and films being made in the United States. And it will put out of work thousands more people in the news and entertainment industries, as well as in the trades and small businesses that support these productions."