Paramount/WBD merger delayed until after trial or June 2027

A proposed merger between Paramount and Warner Bros. Discovery has been delayed for months after a dozen states filed a lawsuit challenging its legality. Under an agreement filed in court, the companies will not complete the $111 billion deal until at least five days after a judge rules on the merits of the case, or by June 1, 2027, whichever comes first. The delay also applies to the Writers Guild of America, which separately sued to block the merger.

The agreement effectively halts the merger while the legal challenge proceeds. New York Attorney General Letitia James’ office described it as a “months-long halt” to the transaction. James said the pause is “a critical victory in our efforts to uphold the law and protect the film and television industries.”

The states argue that the merger would harm competition in the entertainment industry. If no court ruling on the merits occurs by June 1, 2027, the plaintiffs may seek a preliminary injunction to continue blocking the deal. The delay prevents the companies from integrating their operations until the legal dispute is resolved.