According to Deadline, a lawsuit has been filed against Paramount Skydance seeking to block its merger with Warner Bros. Discovery (WBD). The trial is set to begin on March 2, 2027, and will run through March 19, 2027.
The lawsuit was initiated by the attorneys general from a coalition of states, including Arizona, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon, Washington, and California. They argue that Paramount’s acquisition of WBD would violate antitrust laws by significantly harming competition in wide-release and high-grossing theatrical distribution, as well as in cable licensing.
In late July, Paramount agreed to pause its efforts to finalize the deal while the lawsuit is ongoing. An urgent financial issue arises because, as part of the agreement, Paramount will incur a $6.9 million per-day fee after September 30, totaling approximately $650 million per quarter. With the trial not starting until March, this adds a substantial cost to the deal.
The merger cannot proceed until the trial concludes. Paramount has committed to paying WBD $7 million for each day the merger remains incomplete after September 30. Given the trial schedule, this could result in significant financial liabilities. Furthermore, the merger has a June 4, 2027 deadline, and if it does not go through due to regulatory complications, Paramount will owe a $7 billion termination fee.
For context, Warner Bros. Discovery is the broadcast partner of All Elite Wrestling (AEW). AEW President and CEO Tony Khan has expressed optimism regarding Paramount’s acquisition of WBD, stating that he expects Paramount to fully support the promotion.
