Paramount agrees to delay Warner Bros. merger amid lawsuit
Paramount has agreed to freeze its merger with Warner Bros. Discovery until as late as June 2027. Twelve states have argued that the deal would
Paramount has agreed to freeze its merger with Warner Bros. Discovery until as late as June 2027. Twelve states have argued that the deal would create a "media behemoth" that would harm the US entertainment industry. Paramount on Friday agreed to delay its merger with Warner Bros. Discovery as a lawsuit from a dozen US states seeking to block the deal altogether moves forward. In a court filing, Paramount said it would pause the $110 billion (€96.69 billion) deal until June 2027. Friday'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," according to Paramount, which was bought by Skydance last year.
"This is the fastest and clearest way to prove that this transaction is good for competition, good for consumers and good for creators," the company added. Judge pauses Paramount and Warner Bros megamerger The move comes just days after a US federal judge temporarily blocked the proposed merger following a lawsuit brought by 12 states. The states raised "serious questions" about the deal's potential to "substantially lessen competition," the judge said in her ruling, adding that "the balance of equities and public interest tip sharply in favor of the Plaintiff States." The Trump administration approved the merger of Paramount Skydance, controlled by the Ellison family who are close allies of US President Donald Trump, and Warner Bros.
Discovery, the parent company of CNN and HBO, on June 12 without demanding any changes. States suing to block merger welcome decision Twelve states led by California filed a lawsuit on July 13, arguing that the deal would create a "media behemoth" that would damage the US entertainment and media industry. "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," California Attorney General Rob Bonta said in a statement on Friday. The other 11 states joining the lawsuit — all of them Democratic-led — are Arizona, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon and Washington.
"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," said New York Attorney General Letitia James on Friday. Edited by: Karl Sexton Don't let the algorithm hide the news. If you rely on our team for trusted reporting, please take a moment to select us as your Preferred Source on Google by clicking here and hitting the "star" or "preferred" button, so you'll always see our verified news first.
The BriefWire