Paramount Agrees to Postpone Warner Bros. Merger Until After Antitrust Trial

Paramount Skydance has reached an agreement with a coalition of state attorneys general to postpone the Warner Bros. Discovery merger until after an antitrust trial. The company entered a joint stipulation in the federal case on Friday afternoon agreeing not to close the $111 billion transaction until five days after a trial is held or June 1, 2027, whichever is earlier. No trial date has been set. A coalition of 12 states, led by California, obtained a temporary restraining order earlier this week that blocks the merger from closing for 28 days, pending the outcome of motion for a preliminary injunction. The states allege that the deal will reduce competition in the cable and theatrical markets, and should be blocked. Popular on Variety Paramount had sought a three-day hearing on the injunction motion in late August, but the states resisted that idea, saying they would need more time to take discovery and prepare for a full trial on the merits. The states were due to file their injunction motion on Thursday night, but held off as the two sides held discussions on a path forward. In a statement, the company said the agreement is a “significant win.” “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,” a Paramount spokesperson said. “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.” A hearing was scheduled for Aug. 3 in federal court in Oakland, at which point the two sides were expected to argue over the injunction motion. The two sides have agreed to cancel that hearing. The Writers Guild of America filed its own motion for an injunction earlier this week, which was also set to be heard on Aug. 3. That motion has been withdrawn, as Paramount has effectively conceded that it will not close the deal until a determination of the merits of the antitrust claims. The parties also agreed to submit a joint stipulation by July 31 on their respective positions on trial scheduling. Paramount has been keen to close the deal before Sept. 30, when it will begin to incur a $7-million-a-day “ticket fee” to be paid to Warner Bros. investors. The states previously proposed to hold the trial in April 2027.