Paramount Puts Warner Bros Merger On Hold Until 2027

TV & Film

Jul 25

Paramount’s bid to acquire Warner Bros. Discovery has been put on hold. The company agreed not to close the deal until June 1, 2027, or until shortly after the lawsuits from state attorneys general and the Writers Guild of America are settled. After Paramount announced the merger, the WGA, along with a coalition of twelve states, filed suit. Paramount’s stock sank, holding a 52-week low of $8.17. California’s Attorney General Rob Bonta praised the decision to wait, “Our argument against this illegal merger is straightforward: When too few corporations have too much power in markets central to American life, it makes things more expensive, and it makes things worse.” He continued, “Today’s agreement is 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. We are eager to continue to make our case in court and celebrate another tremendous win in our effort to ensure this unlawful merger never sees the light of day.” New York Attorney General Letitia James also expressed her support for the decision along with Norm Eisen, the spearhead behind the #BlocktheMerger campaign.

Paramount, for their part, claimed to support the decision. According to an official spokesperson, “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. 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.” It’s clear the WGA and the coalition of states do not see eye-to-eye with Paramount. The guild expressed that they will continue to fight to block the merger, so Paramount will likely be tied up in legal battles for the full year. How this will affect upcoming releases is not known yet, but a major concern of the WGA is if the merger goes through, it narrows the industry. The two sides have agreed to have a trial scheduled by July 31.

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