Warner Bros. and Paramount officially put merger on hold, potentially until June 2027
As Californian and NY lawmakers look to investigate the merger, the companies have been forced to put their union on hold.
Even after board and shareholder approval, it seems not everything is smooth sailing for the Warner Bros. and Paramount deal. As questions of reduced competition in the cable and TV markets become more prevalent, a coalition of 12 states have obtained a temporary restraining order, blocking the merger for at least 28 days.
As per Variety, Paramount has now confirmed that it will postpone its merger with Warner Bros. until after an antitrust trial. No trial date has been set yet, but the $111 billion deal will not be closed until five days after the trial is heard, or the 1st of June, 2027. The agreement is set to be postponed by several months at least.
"Halting this merger while our case proceeds is a critical victory in our efforts to uphold the law and protect the film and television industries," said New York attorney general Letitia James. California attorney general Rob Bonta also shared a statement against what he calls an "illegal merger."
"Our argument against this illegal merger is straightforward: When too few corporations have too much power in markets central to American life, it makes things more expensive, and it makes things worse. Today's agreement is great news for audiences, movie theaters, and the many people who write, build, and create the art, news, and entertainment so many of us enjoy. We are eager to continue to make our case in court and celebrate another tremendous win in our effort to ensure this unlawful merger never sees the light of day," he said.
Paramount was keen to close the deal before the 30th of September, after which it incurs a $7 million per-day fee to WB investors. Unless a settlement comes before then, it's likely this will happen and Paramount should get its chequebook out.
