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Paramount has agreed to delay acquiring Warner Brothers Discovery until next year as an Oakland federal court considers a high-profile lawsuit from Attorney General Rob Bonta that seeks to block the merger.
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Last week, Bonta announced he had filed in Oakland federal court to block the $111 billion proposed deal, along with 12 other states, on antitrust grounds. He called his suit a “check on oligarchy” that he said would stave off mass job loss in Hollywood, as the proposed merger would consolidate most of the entertainment industry.
On Friday, Paramount said in a court filing it had agreed to delay the merger until June 1, 2027, at the latest, or until the court decides if the deal can move forward, whichever is earlier. The case was previously set for a court hearing on August 3 after U.S. District Judge Araceli MartÍnez-Olguín granted Bonta’s request for a temporary restraining order.
The Writers Guild of America union also sued, arguing that the merger would suppress wages because there would be fewer opportunities for work for as the combined companies would include control over most major TV and film studios, CBS, CNN and the HBO and Paramount+ streaming networks.
Paramount called the agreement “a significant win” as it provides “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,” Paramount said in a statement. “We look forward to proving our case at trial.”
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A spokesperon for Warner Brothers did not immediately respond to requests for comment.
In a statement, Bonta called the merger “illegal” and its pause “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,” he said.
Paramount Chief Executive Officer David Ellison has lobbied for federal approval to acquire Warner Brothers, leaning on his connections to the White House via his father, Oracle Executive Chairman of the Board Larry Ellison, who is a major donor to President Donald Trump.
Last month, the Department of Justice greenlit the Paramount-Warners Brothers merger, the same month David Ellison attended an Ultimate Fighting Championship celebration at the White House.
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