Paramount Delays Warner Bros. Discovery Merger Until 2027 Pending Lawsuits

Paramount Pictures has consented to delay the closing of its proposed merger with Warner Bros. Discovery until June 1, 2027, or until a merits determination is made in lawsuits filed by several state attorneys general and the Writers Guild of America. The agreement was filed in federal court after U.S. District Judge Araceli Martinez-Olguin extended a temporary restraining order that initially paused the transaction for 14 days and was later prolonged through August 17.

The filing states that the parties will not consummate the transaction or take steps toward integration until the earlier of five days after a merits ruling in the cases or the June 2027 date. The stipulation also applies to the companies’ agents, officers, employees and legal representatives.

Paramount’s spokesperson said the agreement provides “a direct path to a trial based on the evidence” and described it as “the fastest and clearest way to prove that this transaction is good for competition, consumers and creators.”

New York Attorney General Letitia James, representing a coalition of state officials seeking to block the deal, said the merger “is a bad deal for all those who count on a competitive entertainment industry” and called the halt “a critical victory” for protecting the film and television sectors.

The parties also agreed to cancel the existing briefing schedule, an August 3 hearing on a preliminary injunction, and to submit a joint statement on trial scheduling by July 31.

State attorneys general filed suit on July 13, alleging the merger would reduce competition in theatrical film distribution and cable licensing. The Writers Guild filed a separate suit the following day, claiming the deal would limit competition for writers’ services. Paramount has called the antitrust lawsuit “flawed” and said it will vigorously defend the transaction.