As PWMania.com previously reported, AEW President and CEO Tony Khan has expressed optimism regarding the pending acquisition of Warner Bros. Discovery by Paramount Skydance. Khan believes that this merger “will be huge for AEW.”
Additionally, Dave Meltzer has reported that Khan is “a lot happier” about Paramount emerging as the winner in the bidding war against Netflix. He previously feared that if Netflix, WWE’s main streaming partner, acquired Warner Bros. Discovery, it might negatively affect AEW.
The merger between Paramount Skydance and Warner Bros. Discovery was expected to close in the third quarter of this year. However, a significant roadblock arose this week. According to The Hollywood Reporter, a coalition of 12 state attorneys general, led by California, has sued to block Paramount’s acquisition of Warner Bros. Discovery, claiming that the merger violates antitrust laws. The Writers Guild of America (WGA) also filed a lawsuit on July 14th to challenge the merger.
The lawsuit seeks to prevent Paramount from closing the deal until the case is resolved. If this is not the case, the attorneys general reportedly plan to request a temporary restraining order to block the merger. The Hollywood Reporter also indicated that Paramount could face significant financial consequences if it delays finalizing the deal. Under the terms of the agreement, Warner Bros. Discovery shareholders are owed $650 million per quarter, or approximately $6.9 million per day, if the merger is not completed by September 30th.
The latest edition of the Wrestling Observer Newsletter reported that AEW hopes the deal will close quickly, as it would help AEW and its broadcast partners integrate into Paramount. The report also mentioned a “general feeling” that the state coalition lawsuit is unlikely to block the sale given the current public and judicial climate, although this might have been different in another era. The Hollywood Reporter noted that the newly filed lawsuit could “stretch on for years.”
AEW’s current media rights deal with Warner Bros. Discovery runs through 2027, with an option for an additional year extending to 2028. Meltzer predicted that the period of Paramount’s projected takeover of Warner Bros. Discovery until Spring 2027 could be pivotal in AEW’s history. This takeover could enable Paramount to receive a percentage of AEW’s pay-per-view revenue on HBO Max and influence TV ratings, especially in key demographics such as 18-49 and 25-54.
