Paramount Targets $110 Billion WBD Merger by September Despite 12-State Antitrust Suit
Updated
Updated · Deadline · Jul 14
Paramount Targets $110 Billion WBD Merger by September Despite 12-State Antitrust Suit
3 articles · Updated · Deadline · Jul 14
Summary
Jeffrey Kessler said Paramount still plans to close the Warner Bros. Discovery deal this quarter, with September 30 remaining the target despite lawsuits from California, New York and 10 other states.
Paramount told the states it could either close starting July 22 once expected clearances arrive or follow a schedule resolving the case by early September, but Kessler said both options were rejected in favor of seeking a temporary restraining order.
A granted TRO would pause the merger for 14 days and potentially another 14, after which opponents would need a preliminary injunction; Kessler said Paramount would appeal any lower-court loss and take the case to the Supreme Court if necessary.
The company has agreed to pay a $650 million quarterly ticking fee while the deal is pending, underscoring pressure to close a transaction already cleared by the DOJ and many global regulators, though UK and EU approvals are still outstanding.
Paramount argues the merger is pro-competitive because it would bolster linear TV, theatrical production and streaming against Netflix, Disney and Prime Video as traditional entertainment businesses weaken.
Will combining Hollywood's biggest studios benefit viewers, or will it mean higher prices and fewer original shows?
With $80 billion in debt, can this new media titan survive the streaming wars, or is it already too big to succeed?
Why are states fighting a merger the federal government approved, and could their lawsuit upend the entire deal?
Paramount–Warner Bros. Discovery $111 Billion Merger Faces Multi-State Legal Blockade and Industry Backlash
Overview
On July 13, 2026, California Attorney General Rob Bonta and other state AGs filed a multi-state lawsuit to block the Paramount Skydance–Warner Bros. Discovery merger, arguing it would harm movie theaters, cable distributors, and audiences. This legal action, supported by widespread Hollywood opposition and the Writers Guild of America, immediately cast a shadow over the merger’s timeline and introduced new regulatory scrutiny, despite the Justice Department’s earlier approval. The lawsuit highlights growing concerns about industry consolidation and its impact on jobs, content diversity, and consumer choice, setting the stage for a major legal and regulatory battle.