Paramount has agreed to postpone its Warner Bros. merger until after the conclusion of an antitrust trial, which could keep the deal from closing until June 2027.
Paramount agreed to refrain from closing the deal as the antitrust lawsuit recently launched by a coalition of 12 states progresses (via Variety). The update confirms the company won’t make its grasp on Warner Bros. official until five days after the case’s conclusion or June 2027.
“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,” a Paramount spokesperson said in a statement. “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.”
Paramount launched a hostile bid for Warner Bros. just days after Netflix announced it had acquired the HBO company in December of last year. The events that followed eventually saw Netflix exit the acquisition altogether, leaving only Paramount to claim victory.
It’s been far from an easy road, however, with many entities emerging to challenge the deal. The 12-state coalition, led by California, launched its suit July 13 in hopes of “fighting for a free and fair market and a thriving film and television industry that serves creatives and audiences alike.” Earlier this week, Judge Araceli Martinez-Olguin ordered a two-week pause for the merger that would see the deal barred from being completed until August. Now, with no trial date set yet, it could be on hold for nearly a year.
“Our argument against this illegal merger is straightforward: When too few corporations have too much power in markets central to American life, it makes things more expensive, and it makes things worse,” California Attorney General Rob Bonta said in a statement. “Today’s agreement is great news for audiences, movie theaters, and the many people who write, build, and create the art, news, and entertainment so many of us enjoy. We are eager to continue to make our case in court and celebrate another tremendous win in our effort to ensure this unlawful merger never sees the light of day.”
What started as the latest in a series of smaller roadblocks for Paramount has morphed into what could be a nearly year-long delay for the $110 billion Hollywood deal. As noted by Variety, a delay of this length is quite the blow to Paramount, which had been hoping to close its Warner Bros. merger much earlier. Starting September 30, 2026, the company will begin accumulating a fee of $7 million per day, which will be paid to Warner Bros. investors.
For now, it’s unclear when the Paramount-Warner Bros. deal will close. With at least a few months to go as the antitrust lawsuit gets off the ground, Paramount’s fight to take over the company is just beginning.
Photo by Justin Sullivan/Getty Images.
Michael Cripe is a freelance writer with IGN. He’s best known for his work at sites like The Pitch, The Escapist, and OnlySP. Be sure to give him a follow on Bluesky (@mikecripe.bsky.social) and Twitter (@MikeCripe).
