Paramount Pushes Back Completion of $81 Billion Warner Bros. Discovery Deal
Paramount announced on Friday that it will postpone the finalization of its $81 billion acquisition of Warner Bros. Discovery until well into 2027, as a judge continues to weigh a lawsuit filed by twelve states.
Judge’s Preliminary Injunction Stalls the Transaction
A recent court filing shows that Paramount expects the merger not to close until the judge rules on the merits of the states’ complaint or by June 1, 2027.
U.S. District Judge Araceli Martínez‑Olguín earlier this month issued a preliminary injunction that froze the deal for several weeks, citing “serious questions” and “compelling arguments” that the merger could sharply reduce competition.
States Claim the Merger Would Harm Hollywood Competition
The twelve states, led by California, sued last month, asserting that combining Paramount and Warner Bros. Discovery would eliminate competition in the film and television markets and limit choices for moviegoers and cable subscribers.
New York Attorney General Letitia James, who is part of the coalition, called the agreement to halt the acquisition a “decisive victory” for consumers and the industry.
Paramount Frames the Delay as a Path to an Evidence‑Based Trial
The company described the settlement as a “significant victory,” saying it provides a direct route to an evidence‑based trial that will demonstrate the merger’s benefits for competition.
Having been acquired by Skydance only a year ago, Paramount added that this is the “quickest and clearest way” to prove the deal is good for the broader entertainment sector.
