Paramount to delay Warner Bros. merger until as late as June 2027

Paramount Skydance will delay its planned merger with Warner Bros. Discovery until as late as June 2027 amid separate lawsuits filed by state attorneys general and the Writers Guild of America.

The deal could be completed sooner if a federal judge rules on the lawsuits. The deal could close five days after the merits determination.

The transaction “shall not close, be consummated, or otherwise be completed” until then, Judge Araceli Martinez-Olguin ordered Friday.

The deal had been temporarily halted by the judge earlier this week. 

“Today’s agreement is a significant win because the result is exactly what we have sought from the outset: a direct path to a trial based on the evidence,” a spokesperson for Paramount, CBS News’ parent company, said in a statement. “This is the fastest and clearest way to prove that this transaction is good for competition, good for consumers, and good for creators, a conclusion dozens of competition authorities around the world have already reached. Plaintiffs’ market definitions bear no relationship to the realities of today’s marketplace and cannot withstand scrutiny. We look forward to proving our case at trial.”

A dozen state attorneys general on July 13 sued to block Paramount Skydance’s acquisition of the rival studio — a hurdle to the $110 billion deal that would remake Hollywood —  claiming the combination of the two companies would hurt competition in the film industry. The WGA, a labor union representing entertainment and news writers, filed a separate lawsuit the following day, alleging the deal violates federal antitrust law and would lead to lower pay and fewer opportunities for writers.

Paramount has said the deal would promote competition, expand opportunities for writers and result in a stronger company.

New York Attorney General Letitia James, who joined in filing the states’ lawsuit, said in a statement Friday, “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. I look forward to continuing our case to stop this illegal merger.”

California Attorney General Rob Bonta called it “great news for audiences, movie theaters, and the many people who write, build, and create the art, news, and entertainment so many of us enjoy. We are eager to continue to make our case in court.”

The WGA said, “Today, Paramount and WBD agreed to what the state AGs and the WGA sought: the merger will be put on hold pending the outcome of the states’ and WGA’s cases or June 1, 2027, whichever comes first.”

The delay could be costly for Paramount, which has agreed to pay Warner Bros. shareholders a fee totaling $650 million per quarter if the deal doesn’t close by Sept. 30.