Paramount CEO says merger with Warner Bros. Discovery remains on track despite legal challenges

Paramount Pictures and Skydance CEO David Ellison told employees on Monday that he remains confident the planned combination with Warner Bros. Discovery does not raise any legal issues and will eventually be completed. He thanked staff for their patience amid ongoing litigation and said the two companies continue to operate independently while focusing on their audiences and strategy.

The merger, originally expected to close in the third quarter, is currently paused after a coalition of twelve state attorneys general, led by California, obtained a temporary restraining order to block the deal on antitrust grounds. A preliminary injunction hearing scheduled for early August has been postponed, with the parties agreeing to proceed directly to a trial on the merits. The court will set a trial date after the parties discuss scheduling this week and provide an update on July 31.

Paramount plans to seek a November start for the trial, while the attorneys general prefer a January date. In parallel, the Writers Guild of America has filed its own lawsuit to halt the merger; both cases are before the same judge in the Northern District of California.

Ellison’s memo noted that regulatory approvals have been secured in 65 jurisdictions, including the U.S. Department of Justice and the European Union, and that the transaction is consistent with antitrust law. He emphasized that the combined company would have greater scale to invest in storytelling, expand consumer choice, and support creators.

Until a court decision, Paramount has pledged not to integrate or consolidate operations with Warner Bros. Discovery, and integration planning will continue under the direction of the Integration Management Office.