Paramount agrees to delay Warner Bros. Discovery takeover for months

Paramount announced Friday afternoon that its takeover of Warner Bros. Discovery will be delayed for many months, and potentially well into 2027, due to pending lawsuits by state attorneys general and the Writers Guild of America.

Paramount said in a court filing that it has agreed not to complete the mega-merger until an antitrust trial takes place, or until June 2027, whichever comes first.

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The announcement, blowing up Paramount’s original plan to take control of Warner by the end of September, was the result of discussions between the lawyers for all the parties involved.

Shares in both Paramount and WBD slumped on the news.

In a statement, a Paramount spokesperson said, “Today’s agreement is a significant win because the result is exactly what we have sought from the outset: 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. Plaintiffs’ market definitions bear no relationship to the realities of today’s marketplace and cannot withstand scrutiny. We look forward to proving our case at trial.”

The agreement cancels an Aug. 3 hearing on the states’ request for a preliminary injunction and withdraws the Writers Guild’s similar motion.

Instead, the parties will move directly toward a trial on the underlying antitrust claims, with a proposed schedule due next Friday.

The delay is potentially costly for Paramount. Under the terms of the merger agreement, the company will begin to owe Warner Bros. Discovery shareholders a 25-cent-per-share “ticking fee” each day the transaction remains incomplete after September 30.