Plans for a Paramount and Warner Bros. merger are officially on hold until after an antitrust trial, amid uncertainty about the future of the potential media deal.
As reported by Variety, Paramount Skydance entered into 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 date for the forthcoming trial has been set, but the merger is expected to be on hold for several months.
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More on the Postponed Paramount-Warner Bros. Deal
Back in June, the United States Department of Justice approved Paramount’s bid to purchase Warner Bros. Discovery for $111 billion. A bidding war took place between Paramount and Netflix for the legendary entertainment company. For a while, it seemed that Netflix was on track to acquire Warner Bros. However, Paramount’s final bid in February was deemed too strong for Netflix to match.
Earlier this month, Paramount’s attempt to acquire WB was blocked by a California judge after a dozen states sued to stop the purchase. The pause was only applicable for 28 days, but the merger is now officially on hold. Per Variety, California Attorney General Rob Bonta declared the newly entered agreement a major victory.
“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 said. “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.”
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