Paramount and Warner Bros. expect a delay in closing the deal
CNN • • entertainment
Key Points:
- A judge is expected to grant a temporary restraining order (TRO) soon, pausing the Paramount–Warner Bros. Discovery merger for two to three weeks amid a lawsuit filed by 12 state attorneys general alleging antitrust violations.
- Despite the legal challenges, Paramount executives remain confident the merger will ultimately be completed, though the initial plan for a July takeover has been delayed.
- The lawsuit by the Democratic state attorneys general and other legal challenges, including from the Writers Guild of America and consumer groups, represent significant obstacles alongside regulatory scrutiny in the UK and EU.
- Paramount’s lead counsel emphasized the company’s intent to complete the merger by the end of September and indicated they would appeal any court rulings that delay the deal, even up to the Supreme Court if necessary.
- The merger carries financial pressure for Paramount due to a "ticking fee" that increases the deal’s cost if not finalized by October 1, incentivizing a swift resolution despite ongoing litigation.
