Paramount-Warner Bros. Deal Paused Pending Antitrust Trial

Paramount Skydance and Warner Bros. Discovery have entered a joint stipulation that bars the $111 billion transaction from closing until five days after an antitrust trial is held or until June 1, 2027, whichever occurs first. No trial date has been set, but the agreement puts the merger on hold for at least several months while a coalition of twelve state attorneys general pursues a preliminary injunction.

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The merger cleared the U.S. Justice Department in June and the EU after Paramount agreed to end a film-distribution partnership with Universal in Europe. State officials, led by California Attorney General Rob Bonta, filed a challenge on July 13, alleging the combined company would dominate basic cable, tentpole theatrical releases, and wide-release distribution. A temporary restraining order paused the deal for 28 days and was later extended through mid-August.

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• July 13 – Twelve Democratic state AGs file antitrust lawsuit.

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• July 24 – Paramount announces the postponement stipulation.

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• July 31 – Parties to submit a joint stipulation on trial-scheduling positions.

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• June 1, 2027 – Earliest possible closing date after a trial ruling.

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• March 4, 2027 – Original expiration of the merger agreement (subject to automatic extension).

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• June 4, 2027 – Latest possible extension date for the agreement.

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• Deal value: $111 billion.

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• Coalition size: 12 states.

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• Potential “ticking-fee” penalty: $7 million per day after September 2026 if the merger remains unclosed.

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• Temporary restraining order: initially 28 days, later extended.

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• Expected trial length: two to three weeks or more, in the Oakland federal courtroom of Judge Araceli Martinez-Olguin.

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Bonta criticized Paramount’s “dragging its feet” and said the company failed to provide requested documents. He rejected “behavioral” remedies, insisting on structural divestitures. New York AG Letitia James called the restraining order a “critical victory” for protecting the film and television industries.

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Norm Eisen, co-founder of the Democracy Defenders Fund and a member of the #BlocktheMerger campaign, called the deal a threat to democracy, creative freedom, and independent journalism, crediting grassroots resistance for turning the tide.

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• “We do think 2027 is appropriate,” — Rob Bonta

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• “Paramount and Warner Bros. were dragging their feet. They didn’t give us everything we wanted,” — Rob Bonta

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• “We’ve never gotten anything that would come close to addressing the concerns we’ve raised,” — Rob Bonta

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• “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,” — Letitia James

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Sources agree a trial date is unset, but differ on timing: Bonta says “2027 is appropriate,” while the coalition has suggested an April 2027 trial. No public settlement proposals from Paramount have been disclosed.

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The parties must file a joint stipulation on trial scheduling by July 31. Once a trial date is fixed, the court will decide whether to grant a preliminary injunction that could keep the merger blocked until a final ruling. If the trial concludes before June 1, 2027, the merger could close five days after the verdict; otherwise, the agreement will expire on March 4, 2027, with a possible extension to June 4, 2027.

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