Judge approves settlement between Paramount and states over acquisition of WBD – POST Wrestling

A settlement between Paramount and various state attorneys general received a blessing from the judge overseeing the case, eliminating the final barrier to the acquisition.

U.S. District Judge Araceli Martínez-Olguín has approved the settlement, focused on a five-year consent decree of stipulations that David Ellison-led Paramount has agreed to.

[T]he Court finds the proposed consent decree represents a reasonable factual and legal resolution of the dispute,” Martínez-Olguín wrote in her order. She determined that the proposed settlement agreement “reflects a procedurally sound resolution.

The parties reached their agreement following highly contested, however brief, litigation, and they reached their agreement following what they report to have been several rounds of in-depth negotiations.

Variety noted regulatory filings show Paramount’s target to close the deal is next Wednesday, October 6, several days after the “ticking fee” initiates, where Paramount is obligated to pay approximately $7 million per day beginning Thursday this week.

The same outlet reports that WBD CEO David Zaslav is expected to leave the unified company, but hardly empty-handed, with $550 million in stock and cash.  

The $110 billion acquisition of WBD includes backing by David Ellison’s father, Larry, who has guaranteed $46.7 billion in equity financing. It is also supported by sovereign wealth funds from Saudi Arabia, United Arab Emirates, and Qatar in exchange for a 38.5% stake in the combined entity.

AEW is in the middle of a multi-year distribution agreement for its television and digital rights. The agreement runs through 2027 with an option for an additional year on the pact. The rights agreements include its U.S. cable rights for Dynamite and Collision on TBS & TNT (simulcast on HBO Max), and streaming rights for its pay-per-views through HBO Max.  

The UFC is in the first of a seven-year agreement with Paramount Skydance for its domestic streaming rights worth $7.7 billion over the term.