David Ellison Hopes To Close Paramount-WBD Deal “In Approximately Two Weeks” As He Hails Legal Settlement In Company Memo

Paramount CEO David Ellison said Monday’s settlement of two lawsuits aimed at blocking the company’s pending merger with Warner Bros. Discovery represents “an exciting moment for our company and our industry.”

However, he added in a memo to employees, there is “still work ahead to get this deal across the finish line.” (Read the full memo below.)

Ellison addressed the troops just after a landmark settlement with attorneys general of 12 states, who had sued alongside the Writers Guild of America, with each calling the merger illegal under antitrust law. The 5-year consent decree reached with the states and largely matched in WGA talks will require Paramount to make a few concessions, but it does not include any structural remedies or asset sales. The $111 billion merger will bring two storied studios under one roof, and will blend CBS, Nickelodeon and Paramount+ with HBO, CNN and HBO Max.

While Monday’s Yom Kippur holiday was not observed by the stock market, many in the media and entertainment business were attempting to stay offline during the Jewish high holy day. That left California AG Rob Bonta as the main voice speaking publicly about the deal, though waves of new comment and information – plus news of the official deal close – are expected over the next couple of days. Bonta laid out terms of the consent decree, taking pains to say it was “not a blessing” of the mega-merger.

Here is Ellison’s full memo:

Team,

Just a few moments ago, California Attorney General Rob Bonta, on behalf of himself and 11 other State AGs, announced a settlement that clears the path forward on the lawsuit blocking our merger with Warner Bros. Discovery. We have also reached a settlement with the Writers Guild of America.

With both groups’ concerns now addressed, we have complete clearance for this merger and can move toward closing. There’s still work ahead to get this deal across the finish line, but we’re excited to bring these two iconic companies together, as it means more opportunity for our creatives, production crews and employees across the business, and more great entertainment for audiences everywhere.

We’re grateful to Attorney General Bonta and his fellow AGs, and to the WGA, for engaging in good faith to reach this resolution. The agreement includes a number of commitments, including 30+ films annually and expanded U.S. film production – meant to help revitalize our industry and support the people behind it, here at home. Since we launched this bid, our goal has been to build a stronger Hollywood: more stories told, greater choice for consumers, stronger competition. Combining these companies gives us the opportunity to do just that.

This is an exciting moment for our company and our industry. If you’re like me, you’re in this business because you love the art of visual storytelling – the chance to entertain, unite and inspire the world through extraordinary stories. Together, Paramount and WBD can do more of that, for audiences everywhere. And we can’t wait to get started.

I know you have questions about what happens next – your role, your team and how we will work day to day. We don’t have all the answers yet, and I won’t pretend otherwise. We are tentatively planning to close in approximately two weeks. That said, closing is really just the starting line. Bringing two companies this size together takes time, and we’ll share information as it becomes available. In the meantime, if you have questions or concerns, please visit the Integration Hub, reach out to your manager or HR representative, or email intenalcomms@paramount.com.

Thank you for your patience, commitment and hard work throughout this process. I know it’s created real uncertainty, and for some of you, real anxiety – that’s not lost on me. Our people are what make this company one of the best in the world, and I’m truly grateful for your dedication and support. I’m confident we’re going to build something special together in the years ahead.

Let’s go!

David