Backstage Note on AEW’s Hopes for Paramount Skydance Merger With Warner Bros. Discovery

As previously reported, AEW President and CEO Tony Khan has been positive in his public statement regarding the pending Warner Bros. Discovery acquisition by Paramount Skydance, with Khan saying that the merger “will be huge for AEW.” Additionally, Dave Meltzer previously reported that Khan was “a lot happier” that Paramount emerged as the winner in the bidding war over Netflix, fearing the fallout of WWE’s main streaming partner, Netflix, acquiring WBD, which involved keeping HBO Max but not acquiring WBD’s linear TV networks.

The Paramount Skydance and WBD merger was expected to close in the third quarter of this year. However, the pending merger saw a major roadblock earlier this week. As noted by The Hollywood Reporter, a group of 12 state attorneys general, led by California, sued to block Paramount’s acquisition of WBD, alleging that the merger violates antitrust laws. The Writers Guild of America (WGA) filed its own lawsuit in an attempt to block the merger on July 14.

The lawsuit is asking Paramount not to close the deal until the case is settled. If not, the attorneys general will reportedly move for a temporary restraining order to block the merger. THR notes that Paramount could face major financial repercussions if there’s a delay in closing the deal. Under the agreement, WBD shareholders are owed $650 million per quarter or $6.9 million per day if the merger isn’t complete by Sept. 30.

According to this week’s edition of The Wrestling Observer Newsletter, AEW’s perception of the issue is that they hope the sooner that the deal goes through the better it would help AEW and its broadcast partners integrate into Paramount.

AEW’s current media rights deal with WBD runs through 2027, with an option for a fourth year through 2028. Meltzer predicted that the period of Paramount’s projected takeover of WBD through Spring 2027 could be the most important one in AEW’s history. As it means Paramount could potentially receive a percentage of AEW’s pay-per-view revenue on HBO Max, along with the perception of TV ratings, particularly in the 18-49 or 25-54 demographics.

The Observer Newsletter also notes that there’s a “general feeling” that the state coalition lawsuit won’t be able to block the ongoing sale in the current public and judicial climate, but that might not have been the case in another era. THR notes that the newly filed lawsuit could “stretch on for years.”