Paramount Retreats, Pausing Dangerous Takeover of Warner Bros. Discovery as State AGs' Antitrust Suit Moves Forward

WASHINGTON — Paramount Skydance has agreed to delay its merger with Warner Bros. Discovery until June 2027 or after the conclusion of a trial brought by 12 state attorneys general in federal court. Friday’s agreement comes days after a California federal district judge issued a temporary restraining order to halt the $111 billion deal. Paramount and the state attorneys general agreed to the freeze to allow the antitrust case against the merger to proceed to a trial.

Attorneys general from 12 states are suing to stop the merger on grounds that it would violate federal antitrust law, leading to higher prices for film and cable audiences and resulting in fewer movies and TV shows. The combination of these two massive entertainment and news companies would create a media colossus with CBS, CNN, HBO, Nickelodeon and the Warner Bros. and Paramount film studios — among other major media properties — all under one roof.

The deal’s announcement in 2025 spurred widespread protests led by a coalition of First Amendment advocates, unions, consumer-rights groups and Hollywood actors and directors. The delay raises serious doubt that the deal will go through.

Free Press Co-CEO Craig Aaron said:

“Paramount tried to tell us this deal was a slam-dunk, but it just shot an airball. Late in the game, Paramount’s lawyers grasped what we’ve said all along: The states have a very solid case that this deal violates U.S. antitrust law. For the broad and growing coalition against this corrupt and dangerous deal, this delay marks a significant victory.

“Instead of fighting against an injunction and possibly losing now, Paramount’s lawyers have resigned themselves to waiting for a full antitrust trial in federal court. Paramount can pretend all it wants that it looks forward to that test, but that’s just more bluster from company mouthpieces trying to spin a major setback. Now this deal will face its day in court, and we are confident the evidence will show this mega-merger should be blocked.”