Paramount Agrees to Delay $111M Merger With Warner Bros. After State Antitrust Challenge
8 reported2 unconfirmed
Paramount has agreed to put its $111 million merger with Warner Bros. on hold for at least several months, conceding it was unlikely to prevail in an upcoming fight over an injunction, according to California Attorney General Rob Bonta. The decision follows a ruling by Judge Araceli Martinez-Olguin that denied Paramount’s bid to speed up briefing on a preliminary injunction, signaling she was not inclined to allow a multiday hearing. Paramount had hoped to close the deal by mid-September to avoid paying Warner Bros. shareholders millions of dollars a day, but now faces a trial that could last two to three weeks or more in Oakland, Calif. The company has agreed not to close the transaction until five days after the trial ruling or June 1, 2027, whichever comes first. A 12-state coalition challenging the merger will push for a later trial date, possibly in 2027, to allow additional time for discovery. Paramount stated the delay is the fastest way to prove the deal is good for competition, while Bonta argued the merger would hurt consumers and raise prices.
What’s reported
Paramount agreed to put the $111 million merger with Warner Bros. on hold for at least several months.
California Attorney General Rob Bonta said Paramount “saw the writing on the wall” regarding the injunction.
Judge Araceli Martinez-Olguin denied Paramount’s bid to speed up briefing on a preliminary injunction.
Paramount had hoped to close the deal by mid-September to avoid paying Warner Bros. shareholders $7 million per day starting Sept. 30.
The company agreed not to close until five days after the trial ruling or June 1, 2027, whichever comes first.
The 12-state coalition will push for a later trial date, possibly in 2027, for additional discovery.
Bonta said Paramount has not offered structural remedies like divestitures of cable or film distribution assets.
The trial will be held in Oakland, Calif., and could last two to three weeks or more.
Open questions
Whether Paramount will reopen settlement talks with the states.
The exact trial date, which depends on the judge’s schedule.
Key figures
Rob Bonta, California Attorney General
David Ellison, Paramount Skydance chairman and CEO
Judge Araceli Martinez-Olguin
Sources: Variety
