Paramount Agrees to Pause $110 Billion Warner Bros. Merger Until 2027
6 verified5 unconfirmed
Paramount Skydance has agreed to delay its $110 billion acquisition of Warner Bros. Discovery until at least June 2027 or until legal challenges are resolved, according to court filings reviewed by multiple outlets. The agreement comes after a dozen US states led by California obtained a temporary restraining order blocking the merger, arguing it would reduce competition in the cable and theatrical markets. A federal judge had earlier paused the deal for 14 days while considering the states’ request for a preliminary injunction. Paramount called the agreement a “significant win” that provides a “direct path to a trial based on the evidence.” The company faces a “ticking fee” of roughly $7 million per day if the merger does not close by September 30. The combined entity would bring together two of Hollywood’s last five major studios, along with streaming services, cable networks, and news operations including CBS News and CNN.
What’s verified
Paramount Skydance agreed to pause its $110 billion acquisition of Warner Bros. Discovery until June 1, 2027, or until legal challenges are resolved.
A group of 12 US states led by California obtained a temporary restraining order blocking the merger, alleging it would harm competition.
Paramount faces a “ticking fee” of about $7 million per day if the merger does not close by September 30.
In a statement, Paramount described the agreement as a “significant win” and a “direct path to a trial based on the evidence,” adding that the merger is “good for competition, good for consumers, and good for creators.”
The Trump administration approved the merger in June without demanding any changes.
The states that sued are all Democratic-led: Arizona, California, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon, and Washington.
Not yet confirmed
One source reported that the Writers Guild of America also sued to block the merger, arguing it would reduce competition for writers.
Another lawsuit from shareholders was also mentioned in a single source, alleging a side deal between the Ellison family and President Trump regarding changes at CNN — a claim Paramount has denied.
The specific judge’s name (Araceli Martínez-Olguín) and procedural details about the extension of the restraining order appeared in only one source.
Reports of concerns from CBS News and CNN journalists, press freedom groups, and editor Bari Weiss’s role at CBS News were each confined to a single source.
Potential hurdles from UK regulators before the merger can close were noted in only one source.
Key figures
David Ellison (CEO of Paramount Skydance)
Larry Ellison (tech billionaire and father of David Ellison)
Rob Bonta (California Attorney General)
Letitia James (New York Attorney General)
Elizabeth Warren (US Senator)
Sources: The Guardian, dw.com, indiewire.com
