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Paramount agrees to pause $110bn Warner Bros deal amid legal fight
The pause lasts until a ruling on states’ challenge, or June 1, 2027, and could cost about $7 million per day in breakup-style fees if the deal misses a Sept. 30 deadline.
Paramount Skydance has agreed to pause its planned $110 billion acquisition of Warner Bros Discovery while a group of states pursue legal challenges, according to court papers filed with the case. Twelve states led by California obtained a temporary restraining order that blocks the merger from closing for 28 days, pending a motion for a preliminary injunction.
Under the agreement described in the filings, the deal would stay paused until a court rules on the states’ challenge, or until June 1, 2027. The states allege the transaction would reduce competition in both the cable and theatrical markets.
The merger would combine two of the last legacy Hollywood studios, along with TV networks, streaming catalog content, and news operations. That would include HBO Max and CNN under the same ownership structure as Paramount-owned CBS, with film and streaming assets such as Top Gun and the Paramount+ service.
The delay could also carry financial consequences for Paramount, with the company facing roughly $7 million a day in fees it agreed to pay Warner Bros shareholders if the merger does not close by Sept. 30. The article also notes concerns raised by CBS News and CNN journalists about potential job losses if the networks are combined.