Key facts
- Paramount Global and California state officials will meet Monday for antitrust settlement talks.
- California's lawsuit seeks to block Paramount's $111 billion merger with Warner Bros. Discovery.
- Paramount agreed to delay the deal's closing until June 1, 2027, or until the antitrust case is decided.
- A temporary restraining order has paused the deal pending a preliminary injunction hearing.
Paramount Global and California state officials are scheduled to meet Monday for settlement discussions concerning the state's antitrust lawsuit aimed at blocking Paramount's $111 billion acquisition of Warner Bros. Discovery. The lawsuit, filed by California Attorney General Rob Bonta and 11 other state attorneys general, alleges the proposed merger would violate U.S. antitrust laws.
In a significant concession, Paramount has agreed to delay the closing of the deal until June 1, 2027, or until the antitrust case is decided, whichever comes first. This move follows a temporary restraining order issued by U.S. District Judge Araceli Martínez-Olguín, which paused the transaction pending a preliminary injunction hearing. Paramount officials reportedly feared losing this hearing.
Attorney General Bonta hailed the delay as "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." Paramount, however, framed the delay as "a significant win" and expressed confidence in proving the transaction is beneficial for competition and consumers.
The European Commission and over 40 other jurisdictions have already approved the merger, as has the U.S. Justice Department. Despite these approvals, Paramount shares fell 3.3% on the news of the delay, and Warner Bros. Discovery stock erased earlier gains. Paramount will also incur additional costs, including potential break-up fees of $7 billion if the deal fails to close by the new deadline.