Paramount delays Warner Bros. merger until June amid lawsuit

Investing.com -- Paramount said Friday it agreed to halt its $111 billion merger with Warner Bros. Discovery until June 1, 2027, or until a federal judge rules on a lawsuit filed by state attorneys general seeking to block the deal.

The agreement extends a temporary restraining order issued earlier this week by a judge in the U.S. District Court for the Northern District of California, which had paused the merger for 14 days.

The proposed merger would combine two major movie studios, the streaming services HBO Max and Paramount+, and networks including CBS and CNN. David Ellison, who runs Paramount, has pushed to acquire Warner Bros. and outbid Netflix after proposing several escalating offers.

Colorado Attorney General Phil Weiser released a statement Friday addressing the stipulation filed in federal court. "Today’s court filing acknowledges the serious competition and consumer impacts of the Paramount/Warner Brothers megamerger," Weiser said. "The combined company would eliminate competition between the movie behemoths and inflict substantial harm on movie theaters, basic cable distributors, and audiences nationwide."

On July 13, Colorado joined 12 other state attorneys general in filing a lawsuit challenging the merger. The lawsuit argues the deal would combine two of Hollywood’s five major film distributors and two of the five major basic cable companies.

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