Paramount freezes $111 billion Warner deal until lawsuits are resolved
Why it matters: The delay could cost Paramount about $650 million every 90 days starting Oct. 1, with a $7 billion fee if the merger misses a June 2027 deadline.
Paramount agreed to stop taking steps to acquire Warner Bros. Discovery until June 1, 2027, or five days after two lawsuits over the $111 billion merger are resolved, whichever comes first. The commitment was filed Friday in federal court in California after U.S. District Judge Araceli Martínez-Olguín earlier granted a temporary restraining order. A group of 12 states and the Writers Guild of America argue the deal would reduce competition across film, television, news and streaming. The merger would combine Paramount Pictures and Warner’s studio operations, Paramount+ and HBO, and cable brands including CBS and CNN. Under the deal terms, Paramount owes Warner shareholders roughly $650 million for each 90-day delay beginning Oct. 1.