Paramount has agreed to postpone its merger with Warner Bros. pending the outcome of an antitrust trial, a development that could delay the finalization of the deal until June 2027. This agreement comes as a coalition of 12 states, led by California, continues its legal challenge against the proposed transaction.
The postponement means the merger cannot be completed until five days after the antitrust case concludes or until June 2027, whichever comes first. A Paramount spokesperson stated that the company sought a direct path to trial to demonstrate that the transaction benefits competition, consumers, and creators, citing approvals from numerous international competition authorities. The company intends to argue that the plaintiffs' market definitions do not reflect current market realities.
Paramount initiated its bid for Warner Bros. shortly after Netflix's initial interest in acquiring the company in December. However, Netflix eventually withdrew from the acquisition process, leaving Paramount as the primary suitor. The deal has faced significant opposition, with the 12-state coalition filing a lawsuit on July 13 to preserve a free and fair market within the film and television industry.
California Attorney General Rob Bonta emphasized that the agreement is a victory for audiences, movie theaters, and industry creatives, stating that the state is prepared to continue its case in court to prevent what it deems an unlawful merger. The current situation represents a substantial delay for the $110 billion Hollywood deal, which Paramount had hoped to close sooner. According to Variety, Paramount will begin incurring a daily fee of $7 million to Warner Bros. investors starting September 30, 2026, if the deal remains unclosed.
With the antitrust lawsuit underway and no trial date yet set, the timeline for the Paramount-Warner Bros. merger remains uncertain, facing a potential delay of nearly a year.