'Huge Win for Consumers': Paramount Delays Warner Bros. Deal Over Court Fight

Paramount Skydance on Friday officially delayed its attempted acquisition of Warner Bros. Discovery after a federal judge in the Northern District of California temporarily blocked the $111 billion deal at the request of a dozen Democratic attorneys general.

US District Judge Araceli Martínez-Olguín granted the temporary restraining order on Monday after finding that the plaintiffs—led by California Attorney General Rob Bonta—provided "compelling evidence that the combined firm resulting from the transaction will possess substantial market share in the wide-release theatrical distribution market." She extended the order on Thursday.

The companies have now agreed not to close the deal—also the target of a Writers Guild of America lawsuit—until five days after a trial is held or June 1, 2027, whichever is sooner. While the attorneys general and their supporters framed the development as a victory for their side, a Paramount spokesperson similarly said that "today's agreement is a significant win because the result is exactly what we have sought from the outset: a direct path to a trial based on the evidence."

"This is the fastest and clearest way to prove that this transaction is good for competition, good for consumers, and good for creators, a conclusion dozens of competition authorities around the world have already reached," the spokesperson continued. "Plaintiffs' market definitions bear no relationship to the realities of today's marketplace and cannot withstand scrutiny. We look forward to proving our case at trial."

Meanwhile, Bonta said in a statement that "our argument against this illegal merger is straightforward: When too few corporations have too much power in markets central to American life, it makes things more expensive, and it makes things worse."

"Today's agreement is 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," he emphasized. "We are eager to continue to make our case in court and celebrate another tremendous win in our effort to ensure this unlawful merger never sees the light of day."

Joining Bonta in battle are the attorneys general of Arizona, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon, and Washington. They, too, celebrated on Friday.

"Stopping this merger while our case proceeds is a critical victory in our efforts to uphold the law and protect the film and television industries," New York's Letitia James stressed on social media. In a video, New Jersey's Jennifer Davenport also called the companies' decision "a huge win for consumers" and pledged to "continue to fight to block this merger for good."

Responding to one of Davenport's social media posts, actor and activist Mark Ruffalo declared: "Today's news is a repudiation of Paramount's strategy of currying favor with the Trump administration to grease the wheels on this illegal merger—from sham settlement payments to manipulating its own news coverage. Stay strong and #BlockTheMerger."

Some opposition to the deal is rooted in the fact that it would give Paramount CEO David Ellison—the son of billionaire Larry Ellison, a major donor to President Donald Trump—control of CNN, as he already faces mounting criticism for his and Bari Weiss' management of CBS News.

"The Ellisons believed their relationship with President Trump would help them push through a disastrous deal that threatened democracy, creative freedom, and independent journalism. We in the #BlocktheMerger campaign helped prove them wrong," said Norm Eisen, co-founder and executive chair of Democracy Defenders Fund, in a statement.

"Paramount's decision keeps two major studios competing instead of handing one company even more power over what Americans watch, what they pay, and where entertainment workers can earn a living," he continued. "The merger would have eliminated one of Hollywood's largest buyers of scripts and productions while placing Paramount+, HBO Max, CBS News, CNN, and dozens of local stations under the management of one company."

"This victory in putting the merger on hold belongs to the people who refused to treat the merger as inevitable," Eisen added. "Artists, journalists, filmmakers, and consumer advocates spoke out despite the risk of retaliation, more than 5,500 people signed our open letter, and Attorneys General Rob Bonta and Letitia James, along with 10 other attorneys general, acted. This collective resistance is turning the tide."

Craig Aaron, co-CEO of the advocacy group Free Press, said that "Paramount tried to tell us this deal was a slam-dunk, but it just shot an airball. Late in the game, Paramount's lawyers grasped what we've said all along: The states have a very solid case that this deal violates US antitrust law. For the broad and growing coalition against this corrupt and dangerous deal, this delay marks a significant victory."

"Instead of fighting against an injunction and possibly losing now, Paramount's lawyers have resigned themselves to waiting for a full antitrust trial in federal court," Aaron added. "Paramount can pretend all it wants that it looks forward to that test, but that’s just more bluster from company mouthpieces trying to spin a major setback. Now this deal will face its day in court, and we are confident the evidence will show this mega-merger should be blocked."