Paramount Agrees to Delay Warner Bros. Merger for Months
The New York Times • • entertainment
Key Points:
- Paramount and Warner Bros. Discovery have agreed to pause their $111 billion merger until June 2027 at the latest, pending a judge's approval, while a lawsuit from state attorneys general challenges the deal.
- The merger, which would combine major studios, streaming services HBO Max and Paramount+, and networks like CBS and CNN, faces opposition from a coalition of 12 states led by California and New York.
- Paramount faces a $650 million quarterly penalty fee starting in October if the deal does not close, making the delay potentially costly for the company.
- New York Attorney General Letitia James called the freeze a "crucial victory," arguing the merger threatens competition in the entertainment industry, while Paramount views the delay as an opportunity to prove the deal's benefits in court.
- The pause extends a shorter freeze imposed by a federal judge and awaits approval from Judge Araceli Martínez-Olguín, who is overseeing the case.
