Paramount agrees to hold off on Warner Bros. merger

The Hill - News Paramount agrees to hold off on Warner Bros. merger https://thehill.com/media/5989450-paramount-warner-merger-delayed/ 2026-07-24T21:05:32.226Z Paramount said on Friday that it has agreed to delay the company’s $111 billion acquisition of Warner Bros.

The agreement announced Friday says Paramount won't complete its acquisition until the court rules on the states' claims or until June 1, 2027, whichever comes first.

What we know

CNBC Top News Paramount agrees to delay WBD acquisition to as late as June 2027 amid legal challenge https://www.cnbc.com/2026/07/24/paramount-wbd-merger-delay.html 2026-07-24T20:05:36.253Z Paramount Skydance has agreed to delay its proposed acquisition of Warner Bros. In a statement Friday, Paramount called the agreement a "significant win." "The result is exactly what we have sought from the outset: a direct path to a trial based on the evidence.

We look forward to proving our case at trial." Shares of Paramount Skydance fell 3% in afternoon trading Friday. Paramount and WBD agreed to combine in February after the David Ellison-led company outbid Netflix.

"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," Bonta said in a statement Friday.

The details

Discovery to as late as June 2027 — a multi-month delay that will ultimately raise the deal price — as the tie-up faces a legal challenge. The fee, an additional 25 cents per share, per quarter until closing, could amount to roughly $650 million in cash value every quarter. Should the deal fall apart entirely, Paramount would owe WBD a $7 billion breakup fee. The $110 billion deal would bring together two major Hollywood studios, two popular streaming services and a host of TV networks.

Reactions

The company and the attorneys general said in a court filing that both sides have agreed to halt the merger until a judge’s... Paramount had repeatedly said it intended to complete the transaction by the end of September. 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," the company said.

What to watch

Under the terms of its agreement, Paramount will owe Warner Bros. But U.S. state officials have raised concerns that the tie-up would reduce competition and result in job losses in the film industry.