Paramount has agreed to postpone the closure of its $81 billion acquisition of Warner Bros. Discovery in the United States until well into next year, awaiting a judge’s decision on a challenge from 12 states aiming to block the deal. The company stated in a court filing that the merger will not be finalized until June 1, 2027, or until a court ruling is reached regarding the states’ lawsuit. This decision follows a temporary restraining order issued by U.S. District Judge Araceli Martinez-Olguin to halt the transaction temporarily, acknowledging concerns raised by the states about the merger’s potential negative impact on competition.
In response, Paramount referred to the agreement as a “significant win,” emphasizing the importance of proceeding to trial based on evidence. The company, recently acquired by Skydance, highlighted that this approach is the most efficient way to demonstrate that the merger is beneficial for competition and the industry at large.
The lawsuit against Paramount’s acquisition of Warner Bros. was initiated by twelve states, with California leading the legal action. They argue that the merger would stifle competition in Hollywood, reducing choices for consumers, especially moviegoers and cable subscribers. New York Attorney General Letitia James, part of the group opposing the merger, described the decision to pause the deal as a “critical victory.”
A potential merger between Warner Bros. and Paramount would unite two of the last five legacy studios in Hollywood, along with various TV networks, streaming titles, and news outlets. Notably, Warner Bros.’ HBO Max streaming service is currently exclusive to Crave, owned by Bell Media in Canada. Bell Media confirmed that their agreement with Warner Bros. Discovery ensures HBO and HBO Max content will remain on Crave “for the foreseeable future.”