Paramount delays $81 billion Warner buyout amid legal challenge from 12 states

NEW DELHI: Paramount has agreed to postpone the completion of its proposed $81 billion acquisition of Warner Bros. Discovery until at least next year, giving a US federal court more time to decide a lawsuit filed by a coalition of states seeking to stop the deal.In a filing submitted on Friday, the company said it would not finalize the transaction before June 1, 2027, or until the court issues a ruling on the merits of the case, whichever comes first.The commitment follows a temporary restraining order issued earlier this week by US District Judge Araceli Martinez-Olguin, who paused the merger process after finding that the states had presented "serious questions" and a credible argument that the deal could "substantially lessen competition."Paramount described the agreement as a "significant win because the result is exactly what we have sought from the outset: a direct path to a trial based on the evidence."The media company, which was acquired by Skydance last year, said the arrangement provides the "fastest and clearest way" to demonstrate that the merger would strengthen competition and benefit the broader entertainment industry.The lawsuit, brought by 12 states led by California, argues that combining Paramount and Warner Bros. Discovery would reduce competition across Hollywood, ultimately limiting choices for consumers, including cinema audiences and cable subscribers."From the workers and artists who bring stories to life to the families who buy tickets at the box office, Paramount's illegal takeover of Warner Bros. is a bad deal for all those who count on a competitive entertainment industry," New York Attorney General Letitia James, who is among those suing to block the merger, said Friday.She called the agreement to halt the deal a "critical victory."Get the latest Business News and Live updates. Download the TOI app.