Overview
- Paramount and a coalition of 12 state attorneys general filed a joint court stipulation that Paramount will not close the acquisition until five days after the states’ antitrust trial ends or until June 1, 2027, whichever comes first.
- The move, agreed in a legal filing on Friday, cancels an expedited preliminary injunction hearing and requires the parties to propose a trial schedule to the court by July 31.
- State prosecutors and the Writers Guild argue the merger would reduce competition and harm creators and consumers, while Paramount points to recent clearances from the U.S. DOJ and other regulators as support for the deal.
- Delays carry heavy costs for Paramount because the merger agreement includes a quarterly 'ticking' payment that converts to roughly $7 million per day after the Sept. 30 window and an up-to-$7 billion termination fee if closing does not occur by next summer.
- The litigation will now run alongside separate foreign reviews and shareholder and labor suits, and the trial timetable will be decisive for whether the companies must restructure, proceed, or abandon the merger.