Breaking: Paramount Agrees to Delay Warner Bros. Merger Until June 2027

For now, the two major studios will remain competitors.

Paramount’s takeover of Warner Bros. Discovery just became a little less inevitable.

On Friday, Paramount agreed to delay the proposed merger until June 2027 while a federal judge considers a lawsuit brought by 12 state attorneys general this month.

Paramount Skydance CEO David Ellison, son of Trump-aligned tech mogul Larry Ellison, made an aggressive push to acquire Warner Bros. Discovery when the conglomerate officially went on sale last year. Netflix won the initial bidding war but later backed out.

Earlier this week, a judge put a temporary restraining order on the $110 billion merger, which would unite two of Hollywood’s major film studios, several major streaming services, and more than 50 cable channels under the same corporate umbrella. It would also put CNN under control of the same people currently in charge of CBS News, which has been rocked by multiple controversies. The pause means that the Ellisons are unlikely to take control of CNN before the midterm elections.

The deal would dramatically reshape Hollywood, likely leading to sweeping job cuts and decreased film and TV production in an already struggling industry.

Said Norm Eisen in a statement

“The Ellisons believed their relationship with President Trump would help them push through a disastrous deal that threatened democracy, creative freedom and independent journalism. We in the #BlocktheMerger campaign helped prove them wrong.

“Paramount’s decision keeps two major studios competing instead of handing one company even more power over what Americans watch, what they pay, and where entertainment workers can earn a living.”

In a statement to multiple news outlets, Paramount said it was looking forward to taking the case to trial, and called the transaction “good for competition, good for consumers, and good for creators.”

In their lawsuit, the 12 state AGs argued the merger was a violation of the Clayton Antitrust Act of 1914, a law designed to prevent monopolies and encourage competition in the marketplace. A Paramount-Warner Bros. merger would “inflict substantial harm on movie theatres, basic cable distributors, and, ultimately, audiences nationwide,” according to the suit.

Meredith Blake is The Contrarian’s culture columnist.

---