Paramount Halts Warner Bros. Discovery Merger Over Antitrust Lawsuit

Paramount agreed on Friday to halt its merger with Warner Bros. Discovery until June 7 at the latest. The suspension follows a lawsuit from state attorneys general arguing that the deal violates antitrust laws. Judge Araceli Martínez-Olguín previously issued a 14-day temporary restraining order, noting that a combined entity would control 27% of the worldwide theatrical movie market.

As part of the agreement to delay the merger, the Writers Guild of America dropped its request for a preliminary injunction. Paramount faces severe financial risks if the deal collapses or is delayed, including a $7 billion termination fee or a $7.7 million daily ticking fee starting October 1 if the merger continues.

Legal proceedings remain contentious regarding the timeline for a trial. Paramount expects a trial in November, while state attorneys general have proposed starting in 2027. California Attorney General Rob Bonta indicated that the state intends to depose experts and interview employees and entertainment industry figures during the discovery phase.