Paramount/Warner Merger Officially Put on Hold Until at Least 2027 — Here's Why

Paramount said in a statement this Friday (24) that it will delay the purchase of Warner Bros. by up to five days after the acquisition trial takes place, or until June 1, 2027, whichever comes first. 

The company reached this agreement with a coalition of attorneys general, committing not to close the $111 billion transaction until the stipulated date. In a statement, the company said the arrangement represents a "victory." Read the declaration below: 

“Today’s agreement is a significant win because the result is exactly what we have sought from the outset: a direct path to a trial based on the evidence. This is the fastest and clearest way to prove that this transaction is good for competition, good for consumers, and good for creators, a conclusion dozens of competition authorities around the world have already reached. Plaintiffs’ market definitions bear no relationship to the realities of today’s marketplace and cannot withstand scrutiny. We look forward to proving our case at trial.”

A coalition of 12 states, led by California, obtained a restraining order preventing the acquisition from being finalized over the next 28 days, while a decision on a preliminary injunction is pending. The states argue that the deal will reduce competition in the cable TV and movie exhibition markets. 

A hearing had been scheduled for August 3 in a federal court in Oakland, where the parties were expected to argue over the request for a preliminary injunction; however, both sides agreed to cancel the hearing. 

The Writers Guild of America (the U.S. screenwriters' union) filed its own request for a preliminary injunction earlier this week, which was also set to be considered on August 3. That request was withdrawn, since Paramount effectively agreed not to close the deal until there is a ruling on the merits of the antitrust claims.