Paramount Skydance has agreed to delay its acquisition of Warner Bros. Discovery, initially expected to close by September 2026, to as late as June 2027. This delay follows a lawsuit from a coalition of state attorneys general, led by California's Rob Bonta, who are challenging the merger on antitrust grounds. A judge has issued a temporary restraining order, further complicating the timeline.
Paramount views this delay as a 'significant win,' asserting that it will allow them to present evidence supporting the merger's benefits for competition and consumers. However, the delay will incur a 'ticking fee' of 25 cents per share per quarter, potentially adding over $1 billion to the deal's total cost if it extends to June 2027.
If the merger fails entirely, Paramount would face a $7 billion breakup fee. The merger, valued at $110 billion, aims to combine two major studios and streaming services, but faces scrutiny from state officials concerned about its impact on competition and job security in the film industry