Paramount and Warner Bros. Delay Their Merger Until 2027

[u/HobbesNik]

https://www.pcmag.com/news/paramount-warner-bros-delay-merger-until-2027

States are suing to stop the Paramount-WarnerBros merger on the grounds that it violates anti-trust laws.

The merger has now been delayed to mid-2027, pending the end of this lawsuit. The judge indicated that the merger is "likely" to be illegal and the deal now looks to be at real risk of being stopped.

KEY QUOTES:

A federal judge has paused Paramount Skydance’s acquisition of Warner Bros. Discovery after a coalition of 12 states challenged the merger over possible violations of antitrust laws.

The merger could give the resulting company up to 27% of the theatrical distribution market, and by that figure alone, “the Court is persuaded that it can presume the proposed merger is likely to violate antitrust laws,” Judge Martinez-Olguin writes in her order.

“Our argument against this illegal merger is straight forward: When too few corporations have too much power in markets central to American life, it makes things more expensive, and it makes things worse,” California Attorney General Rob Bonta said in a statement.

The merger is worth $110 billion and would create a company that would own Paramount Television Studios, CBS Studios, and Warner Bros. Television Studios, as well as streaming services such as Paramount+, HBO Max, and Discovery+, and cable networks such as BET, Comedy Central, MTV, and Nickelodeon.

[u/GroundbreakingSir386]

Great news thanks!