Paramount has agreed to postpone the closure of its $81 billion acquisition of Warner Bros. Discovery in the United States well into the next year. This decision follows a challenge from 12 states aiming to block the deal. Paramount stated in a court filing that the merger would not be finalized until June 1, 2027, or until a court ruling is made regarding the states’ lawsuit.
The delay comes after U.S. District Judge Araceli Martinez-Olguin granted a temporary restraining order to halt the transaction for several weeks. The judge noted that the states had raised significant concerns about the merger’s potential negative impact on competition.
Paramount referred to the agreement as a “significant victory,” emphasizing that it provides a clear path to a trial based on evidence. The company, recently acquired by Skydance, asserted that this was the quickest and most transparent way to demonstrate that the merger would benefit competition and the broader industry.
A coalition of 12 states, led by California, filed a lawsuit last month to prevent Paramount’s acquisition of Warner Bros., arguing that it would stifle competition in Hollywood and limit choices for consumers. New York Attorney General Letitia James, part of the group opposing the merger, described the decision to pause the deal as a “critical win.”
If completed, the Warner Bros.-Paramount merger would bring together two of Hollywood’s last five legacy studios, along with various TV networks, streaming titles, and news operations. This would also impact HBO Max, currently held exclusively by Crave in Canada, under Bell Media’s ownership. Bell Media has confirmed that HBO and HBO Max content will continue to be available on Crave for the foreseeable future, as part of their agreement with Warner Bros. Discovery.
The delay in the merger reflects ongoing legal challenges and concerns about the potential consequences for competition within the entertainment industry.