Paramount and Warner Bros. Deal Delayed Until After Antitrust Trial
Paramount agreed with a coalition of state attorneys general to postpone its $111 billion merger with Warner Bros. Discovery until after a pending antitrust trial, extending the deadline to at least five days after the trial or June 1 2027.
Paramount Skydance and a coalition of 12 state attorneys general have entered a joint stipulation in federal court to delay the closing of Paramount’s $111 billion acquisition of Warner Bros. Discovery. The agreement bars the merger from being completed until five days after a trial is held, or June 1 2027, whichever occurs first, effectively putting the deal on hold for several months.
The states, led by California, had earlier secured a temporary restraining order that blocked the merger for 28 days while they pursue a preliminary injunction, arguing the transaction would lessen competition in cable and theatrical markets.
"Halting this merger while our case proceeds is a critical victory in our efforts to uphold the law and protect the film and television industries," New York Attorney General Letitia James said.
"Our argument against this illegal merger is straightforward: When too few corporations have too much power in markets central to American life, it makes things more expensive, and it makes things worse," California Attorney General Rob Bonta added.
Paramount described the stipulation as a "significant win," stating that it provides a clear path to trial to demonstrate that the merger benefits competition, consumers and creators, a conclusion it says aligns with decisions of competition authorities worldwide.
The parties also cancelled a scheduled hearing on the injunction motion and agreed to submit a joint filing on trial scheduling by the end of July. The Writers Guild of America withdrew its own injunction request after Paramount indicated it would not close the deal before the antitrust case is resolved.