Paramount delays Warner deal to June 2027 as states press suit
What's new: The delay could add about $1.7 billion in quarterly fees, and Paramount still faces a $7 billion breakup penalty if the merger collapses.
Paramount agreed to hold off closing its acquisition of Warner Bros. Discovery until a court rules on a multistate antitrust case or until June 1, 2027, extending what had been a plan to finish the deal by late September. The pause follows a temporary restraining order from U.S. District Judge Araceli Martínez-Olguín after 12 states led by California sued to block the merger. State attorneys general argue the combination would cut competition in Hollywood and hurt consumers and workers. The delay carries a steep cost: Paramount must pay Warner shareholders an extra 25 cents a share each quarter starting Sept. 30, or roughly $650 million every 90 days.