A week later, the court suspended the merger of the companies.…
A week later, the court suspended the merger of the companies. According to a statement by the company in court, the acquisition could be postponed until June 2027 if the court does not issue a ruling on this deal earlier, AFP reports.
Consensus
- Paramount Skydance agreed to postpone the acquisition of Warner Bros. Discovery until at least June 1, 2027.
- The delay is due to an antitrust lawsuit filed by 12 states, including California, seeking to block the merger.
- The court has issued a temporary injunction preventing the completion of the merger while the case is under review.
- If the deal is not completed by September 30, Paramount Skydance faces daily penalties of approximately $7 million payable to Warner Bros. shareholders.
- The proposed merger would combine two major film studios, streaming platforms HBO Max and Paramount+, and television networks including CBS and CNN.
- David Ellison, head of Paramount, actively pursued the acquisition after outbidding Netflix in a competitive bidding process.
Points of divergence
- The delay may cost Paramount Skydance approximately $7 million per day in penalties, which the company committed to pay if the merger is not completed by September 30. — meduza
- If the deal is not finalized by June 1, 2027 (or earlier if a court decision is made), the agreement expires on June 4, 2027. — fontanka
- The Department of Justice approved the merger last month, and the European Commission gave conditional approval requiring Paramount to exit a film distribution joint venture with Universal in Europe. — fontanka
- Over 1,000 filmmakers, actors, producers, and industry professionals opposed the acquisition. — meduza
Coverage (3 sources)
- Paramount agrees to freeze acquisition of Warner Bros. for nearly a year — Meduza
- Deal to merge Paramount Skydance Corp. and Warner Bros. Discovery suspended for a year — Фонтанка
- Paramount agrees to delay merger with Warner Bros. for nearly a year — Коммерсантъ