Paramount has agreed to pause its merger with Warner Bros. Discovery until several big lawsuits come to a resolution, a report says.
On Monday, a federal judge suggested that the $81 billion merger be temporarily halted for at least two weeks as activist lawsuits continue to plague the deal.
Now, Paramount has agreed to put the deal on ice until at least June 1, 2027, or until the lawsuits are concluded, according to Deadline.
The biggest issue is the lawsuit spearheaded by California’s Democrat Attorney General Rob Bonta, who is leading a 12-state coalition in a lawsuit aimed at squashing the proposed merger. Other states in the filing include Arizona, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon, and Washington.
But there are other suits on the works, as well, including one filed by the Writers Guild of America, which is also trying to head off the merger.
The deal, though, has already been given the green light by the federal government and European regulators.
Still, Paramount is risking a big loss, though. The studio risks a $7 million-per-day “ticking fee” to be paid to Warners for every day the deal is delayed past Sept. 30.
Paramount celebrated the move to bring the trials to date.
“Today’s agreement is a significant win because the result is exactly what we have sought from the outset: a direct path to a trial based on the evidence,” Paramount said in a statement this week. “This is the fastest and clearest way to prove that this transaction is good for competition, good for consumers, and good for creators, a conclusion dozens of competition authorities around the world have already reached. Plaintiffs’ market definitions bear no relationship to the realities of today’s marketplace and cannot withstand scrutiny. We look forward to proving our case at trial.”
The judge has not signed off on the deal, but has asked attorneys for both sides to agree to the schedule.
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