Paramount Agrees Not To Close Warner Bros. Merger Until Antitrust Trial Complete

Paramount is putting a hold on its efforts to close their deal to takeover Warner Bros. Discovery until a court rules on whether it violates antitrust laws. THR reports that Paramount filed a document on Friday along with a group of states seeking to block the merger. In the filing, the studio said it will put a pause on closing the deal until June of 2027 or five days after the court issues a ruling on the antitrust matters, whichever comes earlier.

The agreement Paramount comes after the coalition of states including Arizona, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon, Washington, and California were granted an extension of a temporary restraining order blocking the merger from progressing. The states argue that Paramount’s WBD acquisition will violate antitrust laws by substantially hurting competition in wide-release and top-grossing theatrical distribution, as well as cable licensing.

Paramount issued a statement on the new filing, noting that it provides “direct path to a trial based on the evidence… 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.”

Paramount is trying to get the deal closed as quickly as possible; if it is not done by September 30th, they will be on the hook to shareholders for $6.9 million per day afterward, equivalent to $650 million per quarter.

Warner Bros. Discovery is the broadcast partner of AEW. Tony Khan has expressed optimism about Paramount acquiring WBD, noting that he expects Paramount to stick with AEW “100%.”