Paramount CEO Remains "Confident" That Warner Merger Will be Fulfilled

Despite Paramount recently suggesting it could delay its merger with Warner Bros. until 2027, CEO David Ellison now states the deal could close in the coming months.

“Let me be clear: we remain highly confident that this transaction poses no legal issues, and we will complete it to bring these two companies together,” Ellison wrote in a statement sent to media outlets.

According to the Los Angeles Times, Ellison had hoped to conclude negotiations this week. However, Warner Bros. executives are complying with a temporary restraining order secured by a California-led coalition of 12 states. The order blocks the acquisition for 28 days while a decision on a preliminary injunction is pending. The state attorneys general argue the deal would significantly reduce competition in cable television and theatrical film distribution.

As Variety reported, uncertainty within Warner Bros. is growing amid these regulatory hurdles. “I don’t pick up on resignation as much as people just wanting to know what they’re looking at. Like, are we planning for the upfront next year?” said one Warner Bros. employee.

Judge Araceli Martínez-Olguín, who is presiding over the antitrust lawsuit brought by California Attorney General Rob Bonta, noted that there is "compelling evidence" the merger violates the Clayton Antitrust Act, which regulates anti-competitive business practices.

Separately, the Writers Guild of America (WGA) recently withdrew its own request for a preliminary injunction—which had been set for an August 3 hearing—after Paramount formally agreed not to finalize the merger until the court rules on the merits of the antitrust claims.

The regulatory turbulence has hit Wall Street: Paramount shares dropped 20% over fears of escalating merger costs, while Paramount Skydance shares fell 2.19% on Monday afternoon, underscoring why Ellison may be eager to prevent further delays.