Overview
- A federal judge extended the court-ordered suspension into mid‑August and Paramount told the court on Friday it will not close the $110 billion deal until an antitrust trial is held or until June 2027, whichever comes first.
- The pause follows lawsuits by a coalition of 12 state attorneys general led by California and a separate suit from the Writers Guild of America, while the U.S. Department of Justice and the European Commission had previously cleared the merger with conditions from the EU.
- Under the merger agreement, Paramount will owe an extra $0.25 per Warner share if the deal misses the September 30 deadline, about $650 million per quarter, and the company has warned delays could cost more than $1 billion.
- By agreeing to skip a near‑term injunction hearing, the parties will now submit a trial schedule to the court and focus on a full antitrust trial that could push final resolution and any appeals into 2027.
- If approved, the transaction would combine major studios, networks and streaming platforms and critics say that would cut the number of big Hollywood studios from five to four, raising bargaining power for the merged company and risking higher prices, fewer productions and fewer jobs for creators.