Paramount has agreed to postpone the closure of its $81 billion acquisition of Warner Bros. Discovery in the United States well into the next year. This decision was made as a judge reviews a challenge from 12 states aiming to block the deal entirely.
In a recent court filing, Paramount announced that the merger would not be finalized until either June 1, 2027, or until a court ruling is issued regarding the states’ lawsuit. This move follows a temporary restraining order granted by U.S. District Judge Araceli Martinez-Olguin to halt the transaction for several weeks, citing concerns raised by the states about potential anticompetitive effects of the merger.
Paramount described the agreement reached on Friday as a significant victory, emphasizing that it aligns with their desired outcome of proceeding to trial based on evidence. The company, acquired by Skydance last year, highlighted that this approach offers the quickest and most transparent route to demonstrate the merger’s positive impact on competition and the industry at large.
The legal battle stems from a lawsuit filed by 12 states, with California leading the charge, asserting that Paramount’s acquisition of Warner would stifle competition in Hollywood, limiting choices for consumers, especially movie enthusiasts and cable subscribers. New York Attorney General Letitia James, part of the group opposing the merger, deemed the agreement to pause the deal a crucial win.
A potential merger between Warner Bros. and Paramount would unite two of the last five longstanding studios in Hollywood, along with an array of TV networks, streaming content, and news outlets. This would encompass HBO Max from Warner Bros., which currently holds exclusive rights on Crave, a streaming service owned by Bell Media.
Bell Media confirmed in statements to Broadcast Dialogue and The Hollywood Reporter that their agreement with Warner Bros. Discovery would ensure HBO and HBO Max content remains on Crave “for the foreseeable future.”