Paramount Global CEO David Ellison remains optimistic about completing the company’s planned $111-billion acquisition of Warner Bros. Discovery, despite recent delays caused by an ongoing antitrust challenge. The proposed merger, initially expected to close by the end of September, has been postponed following an agreement with California Attorney General Rob Bonta and 11 other state attorneys general to hold a trial addressing the legal merits of the deal. The trial is anticipated to take place in 2027.
In a memo to employees shared Monday, Ellison emphasized confidence that the transaction will eventually be approved, stating that both companies continue preparing for integration. Paramount’s stock has fallen roughly 20% since early July amid shareholder concerns over the potential costs and regulatory hurdles associated with the acquisition. On Monday, shares closed down 2.19% at $8.03.
The antitrust lawsuit, led by California and supported by states including Oregon, Washington, Colorado, Nevada, New Mexico, New Jersey, and New York, contends that the merger would violate the Clayton Antitrust Act by increasing concentration in three key markets: wide-release theatrical films, blockbuster movies, and cable television channels. The case is being overseen by U.S. District Judge Araceli Martínez-Olguín, who recently acknowledged that the plaintiff states presented “compelling evidence” suggesting the merger may breach antitrust laws.
Paramount has disputed these claims, highlighting prior regulatory approvals from the U.S. Department of Justice as well as authorities in 65 jurisdictions worldwide, including Australia, China, the European Union, Germany, France, Spain, and Canada. The company, controlled by the Larry Ellison family, argues these clearances demonstrate that the acquisition will not harm competition.
Labor organizations representing entertainment industry workers have also weighed in against the merger. The Writers Guild of America recently filed its own lawsuit expressing concerns about potential negative impacts on writers, while SAG-AFTRA declared support for the states challenging the deal. SAG-AFTRA President Sean Astin stressed the need for thorough regulatory scrutiny, noting the stakes go beyond shareholder value to the future viability of the U.S. entertainment sector. The Teamsters union has similarly voiced opposition.
Ellison’s memo identified the postponement of the closing date as a strategic decision aligned with Paramount’s confidence in the legal process. “We believe this is the right path because the facts and the law are on our side, and a full hearing will demonstrate why the plaintiffs’ arguments should not prevail,” he wrote.
The delay marks a significant shift in the timeline for what would be one of the largest media industry consolidations in recent years, as the companies await the outcome of complex litigation before finalizing the deal.