Paramount Delays Warner Bros. Discovery Merger Until 2027 Amid Antitrust Challenge

Paramount Skydance Corp. and Warner Bros. Discovery have agreed to postpone the closing of their proposed acquisition until June 1, 2027 or until a court issues a ruling on the antitrust lawsuit, whichever occurs first. The agreement follows a temporary restraining order issued by U.S. District Judge Araceli Martínez-Olguín that froze the transaction while a coalition of twelve state attorneys general pursues a permanent block.

Paramount agrees to delay closing Warner Bros buyout while judge considers challenge

The merger, announced in February, would combine two legacy Hollywood studios and their streaming platforms (Paramount+ and HBO Max), as well as news outlets CNN and CBS. Paramount outbid Netflix with a $31-per-share offer, and the Justice Department cleared the deal in June. Critics have noted Paramount CEO David Ellison’s family ties—his father, Oracle co-founder Larry Ellison, is a major donor to former President Donald Trump—and warned of a politically connected conglomerate controlling key news and entertainment assets.

Bloomberg

• February 2024 – Paramount announces $110-$111 billion bid.

Forbes

• July 13, 2024 – California Attorney General Rob Bonta files suit alleging the deal would “extinguish competition.”

Sacramento Bee

• Early June 2024 – Judge Martínez-Olguín grants a temporary restraining order.

New York Times

• August 3, 2024 (scheduled) – Planned preliminary injunction hearing cancelled after the parties’ agreement.

Breitbart

• June 1, 2027 – Deadline in the joint filing for the merger to close or for a court ruling.

Hollywood Reporter

• June 4, 2027 – Final expiration date of the merger agreement if still unclosed.

Washington Examiner

• Deal value reported as $81 billion, $110 billion, and $111 billion across sources.

The Wrap

• The agreement imposes a “ticking fee” of $0.25 per share per quarter if the transaction is not completed by the deadline, amounting to roughly $650 million per quarter or $7 million per day.

The Wrap

• Plaintiffs claim the combined entity would control ?27 % of wide-release theatrical distribution, >30 % of blockbuster releases, and 34 % of basic-cable viewership.

Bloomberg

If completed, the merger would consolidate film studios, streaming services, and news networks under a single owner. Proponents argue the scale is needed to compete with tech giants such as Netflix, Apple and Alphabet. Opponents warn that reduced competition could raise ticket and cable prices, limit creative opportunities for writers and filmmakers, and concentrate political influence over news outlets.

Bloomberg

State attorneys general argue the transaction violates the Clayton Act by consolidating market power in theatrical distribution, blockbuster releases and cable licensing. The Writers Guild of America has filed a separate suit, asserting the merger would suppress writers’ wages and diminish script-bidding competition. Advocacy groups, including the Democracy Defenders Fund and Free Press, have mobilized signatories to oppose the deal, citing concerns over democratic discourse and cultural diversity.

Variety Magazine

Sources differ on the precise valuation—some cite $81 billion, others $110 billion, and still others $111 billion. The “ticking fee” is consistently described as $650 million per quarter, yet daily estimates range from $6.9 million to $7 million. No public breakdown has been released on how the fee would be allocated if the deal remains stalled beyond the deadline.

The Wrap