Paramount’s blockbuster acquisition of Warner Bros. Discovery is now on the verge of completion after a federal judge approved the company’s settlement with 12 state attorneys general, removing the final major legal obstacle standing in the deal’s way.

U.S. District Judge Araceli Martínez-Olguín signed off on the proposed consent decree Wednesday, ruling that the agreement represented a reasonable resolution of the states’ antitrust challenge. Paramount is now tentatively targeting October 6 to officially close the merger.

The states, led by California Attorney General Rob Bonta, had sued to block Paramount’s takeover of Warner Bros. Discovery over concerns that combining two of Hollywood’s major studios could reduce competition across theatrical distribution, television and other areas of the entertainment business. Paramount and the attorneys general ultimately reached a settlement on September 21.

Under the five-year agreement, Paramount has made a number of significant commitments surrounding the newly combined company. The studio will invest an additional $1.5 billion into U.S. film and television production over five years, while maintaining a sizeable theatrical slate.

The combined company is expected to release at least 30 films theatrically each year during the first two years of the agreement, increasing to 32 annually over the following three years. Paramount has also agreed not to sell either the Paramount or Warner Bros. studio lots in California during the five-year period.

The settlement additionally introduces safeguards surrounding the company’s news businesses, with an independent oversight structure intended to protect editorial independence at CNN and CBS News. Paramount and Warner Bros. Discovery’s cable networks will also be subject to separate negotiations with distributors, while financial support has been established for workers displaced as a result of the merger.

Judge Martínez-Olguín acknowledged that the compromise would not satisfy everyone, particularly amid criticism from groups that argued stronger structural remedies were necessary to address the scale of the consolidation. Nevertheless, the court determined that the agreement provided a legally acceptable resolution without requiring the case to proceed through a lengthy trial.

The merger will bring an enormous collection of entertainment brands under one corporate roof, combining Paramount Pictures and Warner Bros., streaming platforms Paramount+ and HBO Max, and television properties including CBS, CNN, MTV and Discovery.

Paramount is already preparing its leadership structure for the post-merger era. David Ellison is set to lead the combined company alongside Mattel chairman and CEO Ynon Kreiz, who has been named co-CEO. HBO chief Casey Bloys is also expected to play a major role in overseeing the newly enlarged streaming operation.

After months of regulatory scrutiny, lawsuits and negotiations, one of the biggest Hollywood mergers in history is now just days away from becoming official.

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