A new update reveals when the $110 billion Paramount and Warner Bros. Discovery merger could close. The merger has faced various obstacles lately despite getting clearance from the Justice Department last month.
What is the update on the Paramount and Warner Bros. merger?
Earlier this month, a group of 12 states filed a lawsuit in the federal court in Sacramento against the Paramount and Warner Bros. merger. These states included California, Arizona, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon, and Washington.
Now, a new report from Deadline reveals that Paramount has agreed not to complete the deal with Warner Bros. Discovery “until June 1, 2027, or until shortly after the merits of lawsuits brought by state attorneys general and the Writers Guild of America are resolved.” In other words, Paramount will be able to finalize the deal by June 1, 2027, if not sooner.
The lawsuit criticizes the merger based on some crucial points. California Attorney General Rob Bonta, who led the lawsuit, mentioned in a statement that the proposed deal would result in “higher prices, lower quality, and less content for film and television, harming movie theaters, basic cable distributors, and ultimately, audiences on every sofa and movie theater seat in the U.S.”
In other news, the big merger also faced another legal trouble this week as a federal judge extended a temporary restraining order, pausing the merger, for another two weeks. This means that Paramount and Warner Bros. won’t be able to close the deal until August 17, 2026.
The extension comes right before an important hearing that will determine whether the court should issue a preliminary injunction against the deal. If granted, the injunction would delay the transaction for a much longer time for the two companies.
The hearing over the preliminary injunction is scheduled to take place on August 3, 2026. Until then, the temporary restraining order will remain in effect.
