NEW YORK — Paramount has agreed to put the brakes on its $81 billion acquisition of Warner Bros. Discovery, holding off on finalizing the deal well into next year as a federal judge considers whether to block it entirely.
In documents filed with the court, Paramount committed to not moving forward with the merger until either a judge rules on the core legal arguments in the states’ lawsuit, or until June 1, 2027 — whichever comes first. The agreement follows a ruling by U.S. District Judge Araceli Martínez-Olguín, who issued a temporary restraining order to freeze the transaction for several weeks. The judge determined that the states had raised “serious questions” and presented a strong argument that the deal could “substantially lessen competition.”
Paramount described Friday’s development as 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.”
The company, which was itself acquired by Skydance just last year, said this represented the “fastest and clearest way” to demonstrate that the proposed merger would benefit competition and the broader entertainment industry.
Twelve states, with California leading the charge, filed suit last month to stop Paramount from completing its takeover of Warner Bros. Discovery. The states contend the combined company would “extinguish competition” across Hollywood, leaving consumers — especially moviegoers and cable subscribers — with fewer options.
New York Attorney General Letitia James, one of the officials backing the lawsuit, weighed in Friday, saying: “From the workers and artists who bring stories to life to the families who buy tickets at the box office, Paramount’s illegal takeover of Warner Bros. is a bad deal for all those who count on a competitive entertainment industry.”
James called the agreement to pause the deal a “critical victory” for those pushing back against the merger.
