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

From CBS News · () English

Summarized and contextualized by DistantNews.

At a glance

News Named sources Ongoing story
  • Paramount and Skydance will delay their planned merger with Warner Bros. Discovery until June 2027 due to lawsuits filed by state attorneys general and the Writers Guild of America.
  • The deal's completion hinges on a federal judge's ruling on the lawsuits, which claim the merger would harm competition and writers' opportunities.
  • Paramount argues the deal will promote competition and benefit creators, while state officials see the delay as a victory for upholding the law and protecting the film industry.

The planned merger between Paramount and Skydance with Warner Bros. Discovery faces a significant delay, potentially pushing the completion date to as late as June 2027. This postponement stems from separate lawsuits filed by a dozen state attorneys general and the Writers Guild of America, both aiming to block the $110 billion deal.

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.

— Paramount spokespersonCommenting on the judge's order to delay the merger until a ruling on the lawsuits.

The legal challenges center on antitrust concerns. State officials argue the combination of the two major Hollywood studios would stifle competition within the film industry. The Writers Guild of America echoes these concerns, alleging the deal violates federal antitrust law and could lead to reduced pay and fewer opportunities for writers.

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.

— Paramount spokespersonDefending the proposed merger against antitrust claims.

Judge Araceli Martinez-Olguin ordered the halt, stating the transaction "shall not close, be consummated, or otherwise be completed" until a ruling on the lawsuits. The deal could be finalized sooner if a federal judge rules on the merits of the cases, with a potential closing five days after such a determination.

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 spokespersonCriticizing the basis of the lawsuits filed by state attorneys general and the WGA.

Paramount, however, maintains that the merger will foster competition, expand opportunities for writers, and ultimately create a stronger company. A spokesperson for Paramount, CBS News' parent company, expressed confidence, stating, "This is the fastest and clearest way to prove that this transaction is good for competition, good for consumers, and good for creators." They criticized the plaintiffs' market definitions as unrealistic and looked forward to proving their case at trial. New York Attorney General Letitia James called the halt "a critical victory in our efforts to uphold the law and protect the film and television industries," while California Attorney General Rob Bonta hailed it as "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."

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.

— Letitia JamesNew York Attorney General, on the judge's decision to delay the merger.
DistantNews Editorial

Originally published by CBS News. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.

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