Paramount’s Acquisition Of Warner Bros. Discovery Update – Judge Extends Temporary Restraining Order on Merger Deal [Update: Paramount Agrees To Not Close Deal Until Next Year or Until Lawsuits Are Resolved]

Update:

Deadline reported that Paramount has agreed to not officially close their acquisition and merger deal with Warner Bros Discovery until either next year or until the lawsuits against them by several state attorneys and Writers Guild of America are resolved.

It was reported that Paramount’s acquisition deal for WBD is currently not expected to be finalized until June 1, 2027 or until shortly after the merits of the lawsuits against them are resolved.

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As noted before, Warner Bros Discovery announced this past April that their shareholders had voted in approval of Paramount Skydance’s acquisition deal for the company. The United States Department of Justice had officially approved Paramount’s acquisition deal this past June. Several state attorneys filed a joint lawsuit and the Writer’s Guild of America also filed a lawsuit earlier this month against Paramount to try to prevent the acquisition deal. WBD is the current media broadcast partner of AEW.

The Hollywood Reporter reported that U.S. District Judge Araceli Martinez-Olguin ruled on Thursday to extend the temporary restraining order against Paramount’s acquisition and merger deal by an additional two weeks to a new date of August 18.

It was reported that the new extra time will give both sides time “to come to an agreement on the schedule and format for legal proceedings on a preliminary injunction, which would freeze the transaction until the case is decided if granted.”

A court hearing is currently scheduled to take place on August 3 to determine whether Paramount’s deal should be further delayed until the lawsuit from the state attorneys is completed first.

Paramount is currently facing the possibility of being required to pay a “ticking fee” to WBD shareholders if the deal is not finalized by September 30. This penalty fee would be roughly around $650 million per fiscal quarter until the deal is finalized or dropped.