As reported by PWMania.com, Paramount recently reached an agreement to settle the lawsuit filed by 11 states seeking to block its upcoming merger with Warner Bros. Discovery (WBD). Although the settlement still awaits judicial approval, it would eliminate one of the final obstacles to completing the merger. It’s worth noting that WBD is the broadcast partner of All Elite Wrestling (AEW).
The latest edition of the Wrestling Observer Newsletter outlines the potential positives and negatives for AEW if the merger goes through. It’s important to clarify that this is an analysis of possible outcomes, not an indication of any ongoing developments.
On the positive side, if Paramount seeks to continue its partnership with AEW, it may need to reduce costs, which could prompt a reconsideration of its current deal when it expires. AEW and WBD’s existing deal runs through 2027, with an option year for 2028. While the value of the 2028 option year is unknown, it is contractually set to increase from the $190 million AEW will receive for 2027. Paramount could choose to cancel at the end of next year, activate the 2028 option, or negotiate a new agreement.
Furthermore, if the deal continues, it would signal that Paramount is satisfied with the partnership, opening up various possibilities for AEW. The Wrestling Observer Newsletter mentions the potential for a CBS network special. Notably, AEW Dynamite achieved viewership figures similar to the UFC’s in 2025, despite airing on a less popular channel and likely drawing only 50% to 75% of the UFC’s average pay-per-view buys. When CBS featured the UFC in a primetime Saturday night special, the ratings were two to three times higher than similar UFC shows aired on ESPN.
There is also the prospect of Paramount, which has hinted at plans to merge Paramount+ with HBO Max, adopting a strategy similar to the UFC’s by offering pay-per-views on their streaming service without an additional charge, while compensating AEW with a higher rights fee. However, this entirely depends on whether they view the UFC deal as a success.
On the downside, Meltzer pointed out that WWE, which has higher viewership, did not secure a renewal from FOX for SmackDown or from NBC for Saturday Night’s Main Event. Instead, WWE renegotiated with NBCUniversal, and Saturday Night’s Main Event now exclusively airs on Peacock. If Paramount ultimately decides not to renew their agreement, AEW might have to seek a new broadcast partner, which could result in lower media rights fees. As of now, it remains uncertain what decision Paramount will make once the merger is finalized.
