Paramount agreed Friday to delay its merger with Warner Bros. Discovery as a lawsuit from a dozen U.S. states seeking to block the deal entirely moves forward.
In a court filing, Paramount said it would put the $110 billion (€96.69 billion) deal on hold until June 2027.
According to Paramount, which bought Skydance last year, Friday’s settlement is an “important victory because the result is exactly what we wanted from the beginning: a direct path to evidence-based trials.”
“This is the fastest and clearest way to prove that this transaction is good for competition, good for consumers, and good for creators,” the company said.
Judge blocks Paramount and Warner Bros. megamerger
The move comes just days after a US federal judge temporarily blocked the proposed merger following a lawsuit brought by 12 states.
The states raised “serious questions” about the deal’s potential to “substantially reduce competition,” the judge said in his ruling, adding that “the balance of equity and public interest increasingly favors the plaintiff states.”
The Trump administration on June 12 approved the merger of Paramount Skydance, controlled by the Ellison family, a close ally of US President Donald Trump, and Warner Bros. Discovery, the parent company of CNN and HBO, without any changes.
The decision of the states to sue to stop the merger is welcome
Twelve states, led by California, filed a lawsuit on July 13, arguing that the deal would create a “media giant” that would harm the American entertainment and media industry.
“We look forward to continuing our case in court and celebrating another tremendous victory in our effort to ensure that this unlawful merger will never come to fruition.” California Attorney General Rob Bonta said in a statement On Friday.
The other 11 states joining the lawsuit – all of them Democratic-led – are Arizona, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon and Washington.
“From the workers and artists who bring stories to life to the families who buy tickets at the box office, Paramount’s illegal acquisition of Warner Bros. is a bad deal for everyone who relies on a competitive entertainment industry,” it said. New York Attorney General Letitia James on Friday.
Edited by: Carl Sexton
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