LOS ANGELES (CNS) – With approval by Mexico in hand, Paramount Skydance announced Friday it has cleared all regulatory hurdlers required to complete its proposed $110 billion acquisition of Warner Bros. Discovery.
Paramount officials said the deal has undergone an eight-month review process involving regulators in 68 countries, including the U.S. Department of Justice.
The deal, however, remains stalled due to a lawsuit filed by multiple states seeking to block the merger, contending it will cost jobs and hurt the entertainment industry by reducing production.
“We are grateful that competition authorities in nearly 70 jurisdictions worldwide have independently and thoroughly reviewed this transaction and reached the same conclusion: it is pro-competitive, pro- consumer and pro-worker,” David Ellison, CEO of Paramount, said in a statement. “Despite this overwhelming global consensus, the litigation brought by the state of California and 11 other state AGs remains the final obstacle to completing a combination that will create a stronger competitor with greater capacity to invest in premium content, support creative talent and workers, and deliver more high-quality entertainment to audiences.”
Last week, a federal judge in northern California scheduled a March 2 trial date for the lawsuit challenging the merger. U.S. District Judge Araceli Martínez-Olguín wrote that the trial will take place from March 2 to March 19 of next year in federal court in Oakland.
The trial dates are significant because after Sept. 30, Paramount will have to pay about $7 million for every day the transaction doesn’t close, under an agreement with WBD.
Paramount previously announced that the planned takeover would remain on hold while it defends against antitrust lawsuits filed last month by a coalition of 12 state attorneys general led by California. As a result, the companies, the state attorneys general and the Writers Guild of America agreed to cancel a preliminary injunction hearing that had been scheduled for Aug. 3.
Earlier this week, however, Ellison increased the pressure on states to resolve the litigation, suggesting he would move the Paramount and Warner Bros. out of California unless a settlement is reached. He said such a move could begin as early as Oct. 1 if settlement talks have not begun.
California Attorney General Rob Bonta, however, blasted the alleged threat and said he remains committed to challenging the proposed merger.
“In a span of weeks, Paramount agreed to halt the merger until a court decision or until June 2027, asked for a November trial, and is now back with another attempt to blackmail the state into letting an illegal deal through,” Bonta wrote on X. “Paramount has lost the plot as it continues to lose in court. It didn’t work the first time — on the eve of our July lawsuit – – and it won’t work this time.
“This illegal merger will result in higher costs, fewer options and fewer people making movies. My office remains committed to stopping illegal consolidation and protecting a vibrant California economy for businesses that play by the rules.”
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