The long-awaited Paramount Skydance acquisition of Warner Bros. Discovery has hit an unexpected roadblock. And the media conglomerate has now accepted a potential delay that could delay the deal until mid-2027.
Although the federal government gave its approval to the $110 billion dollar last month, a coalition of 12 states joined together in an antitrust lawsuit in an attempt to block the deal. U.S. District Judge Araceli Martínez-Olguín then granted a restraining order to put an official halt to proceedings, setting an August 3 hearing date.
According to Deadline, Paramount has agreed in a court order to postpone their acquisition of Warner Bros. Discovery until either the lawsuit from the state attorneys general and the Writers Guild of America attempting to block the deal are settled or June 1, 2027.
The court order from the Northern District of California states, “The transaction at issue in State of California and Writers Guild shall not close, be consummated, or otherwise be completed and Defendants will not take any steps, directly or indirectly, to integrate or consolidate their operations pursuant to the transaction until the earlier of (1) five days after the merits determination in these matters, or (2) June 1, 2027. This stipulation and order extend to Defendants’ agents, officers, servants, employees, attorneys, and other persons who are in active concert or participation with Defendants.”
For sports fans, the delay means that we will in all likelihood not see CBS Sports and TNT Sports fall under the same umbrella in time for the fall football seasons. And any thought of seeing the two team up for UFC coverage or any number of other properties on the networks will have to wait as well.
If this case does indeed go into 2027, it will come at a huge cost to Paramount Skydance. If the acquisition is not closed by September 30, Paramount will owe a daily fee to WBD shareholders that amounts to $7 million per day.
As for why Paramount would agree to such a move knowing that the delay could cost them millions? The company is hoping to fast-track a trial on the merits of the lawsuits, hoping that a victory in court will be the fastest way to finally close the massive acquisition. While Paramount may be optimistic of an eventual victory, that will be up to the legal system to ultimately decide.
