Paramount-Warner Bros. Discovery Merger Paused Until at Least June 2027

Paramount Global announced on Friday that it will not close its acquisition of Warner Bros. Discovery until a court rules on the merits of an antitrust lawsuit filed by a coalition of 12 state attorneys general, or until June 1, 2027, whichever occurs first. The agreement also extends the merger contract, which originally expires on March 4, with an automatic extension through June 4, 2027. The pause supersedes a previously scheduled August 3 hearing on a preliminary injunction and withdraws a similar motion from the Writers Guild of America.

CNN

The proposed transaction, valued at roughly $80-$111 billion, would combine two of Hollywood’s largest studios. State attorneys general, led by California Attorney General Rob Bonta, sued in early July, arguing the merger would “substantially lessen competition” and raise prices for consumers. Paramount had indicated an intention to complete the purchase by the end of September 2026.

CNN

• Reported deal size: $81 billion (AP/PBS), $110 billion, $111 billion (NYT).

Deadline Hollywood

• “Ticking” fee to Warner Bros. Discovery shareholders: $0.25 per share each quarter after September 30 (? $650 million per quarter); Deadline cites a $7.2 million-per-day fee.

CNN

• Breakup fee if the merger is abandoned: $7 billion.

CNN

• Potential daily cost to Paramount if the deal stalls: $7.2 million.

Deadline Hollywood

• Rob Bonta, California Attorney General, praised the delay pact, stating the company pledged not to close the merger before June 1, 2027, or before a legal determination of the suit’s merits.

New York Times

• Letitia James, New York Attorney General, called the agreement a “critical victory” and warned the merger would “extinguish competition” and harm movie-goers and cable customers.

PBS News Hour

State attorneys general argue the combined entity would dominate film distribution, streaming, and cable markets, leading to higher prices and fewer choices. The Writers Guild of America warned the merger could depress writers’ pay and reduce scripted content. Labor advocates, represented by WGA West secretary-treasurer Peter Murrieta, said the deal threatens compensation and creative output for writers.

Deadline Hollywood

Sources differ on the headline valuation: $81 billion (AP/PBS), $110 billion, and $111 billion (NYT). The “ticking fee” is described both as a $0.25-per-share quarterly charge and as a $7.2 million-per-day penalty. No source provides a definitive trial schedule, only that parties will propose a timetable “by next Friday.”

CNN

• “We are eager to continue to make our case in court and celebrate another tremendous win in our effort to ensure this unlawful merger never sees the light of day.” — Rob Bonta, California attorney

CNN

Judge Araceli Martínez-Olguín must approve the proposed trial schedule, expected within days. The attorneys general have indicated a desire for a winter trial date, with insiders suggesting Paramount may propose November. If the case proceeds to trial and results in a loss, Paramount is expected to appeal to the Ninth Circuit and possibly the U.S. Supreme Court. Both companies are slated to release quarterly earnings in the coming weeks, during which analysts will reassess financial projections in light of the extended timeline.

CNN