A U.S. judge has scheduled the antitrust trial over Paramount's proposed $111 billion acquisition of Warner Bros. Discovery for early March, dealing a blow to Paramount's push for a November hearing. The lawsuit, brought by 12 state attorneys general led by California, argues the merger would grant the combined entity excessive market power across film studios, streaming services, and television networks including CBS and CNN.
The delay makes it highly likely Paramount will owe at least $1.3 billion in additional payments to Warner Bros. Discovery shareholders. Under the deal terms, Paramount must pay a $650 million quarterly fee for each quarter the transaction remains unconsummated past September 30. The companies face a June 4, 2027, deadline to close, or Warner Bros. Discovery CEO David Zaslav can terminate and collect a $7 billion breakup fee.
Paramount CEO David Ellison has defended the deal as necessary to compete with streaming rivals Amazon and Netflix. Regulatory authorities in Washington and Europe have already approved the merger.