Paramount has agreed to postpone the closure of its $81 billion acquisition of Warner Bros. Discovery in the US, extending the deadline well into next year. The decision was made as a judge reviews a challenge from 12 states aiming to block the deal entirely.
In a legal filing, Paramount stated that the merger would not be finalized until either June 1, 2027, or until a court ruling is issued on the states’ lawsuit. This development follows a recent ruling by U.S. District Judge Araceli Martinez-Olguin, who granted a temporary restraining order to halt the transaction temporarily, citing concerns raised by the states regarding potential competition issues arising from the merger.
Paramount described the agreement reached on Friday as a significant victory, emphasizing that it aligns with their goal of progressing to a trial based on factual evidence. The company, acquired by Skydance just last year, asserted that this approach represents the most efficient and transparent means to demonstrate that the merger would foster healthy competition within the industry.
The legal battle stems from a lawsuit led by California and eleven other states challenging Paramount’s proposed acquisition of Warner Bros. The plaintiffs argue that the merger would stifle competition in Hollywood, leading to reduced choices for consumers, including movie enthusiasts and cable subscribers.
New York Attorney General Letitia James, part of the coalition opposing the merger, labeled the decision to halt the deal as a crucial triumph. The potential merging of Warner Bros. and Paramount would unite two of the few remaining legacy studios in Hollywood, along with various TV networks, streaming content libraries, and news entities.
Notably, the merger would impact popular platforms like HBO Max, currently under Warner Bros., and the rights held by Bell Media-owned Crave for HBO content in Canada. Bell Media has confirmed that HBO and HBO Max programming will continue to be available on Crave in the foreseeable future, as stated in communications with industry publications earlier this year.