US court extends pause in Paramount and Warner Bros. $110 billion deal
Kyiv • UNN
A federal court in California has extended until August 17 the pause in the $110 billion acquisition of Warner Bros. Discovery by Paramount Skydance Corp. The judge plans a hearing on blocking the deal pending the completion of the review.
A federal court in California has extended until August 17 the pause on the $110 billion merger agreement between Warner Bros. Discovery and Paramount Skydance Corp. This was reported by Bloomberg, writes UNN.
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The corresponding decision was made by U.S. District Judge Araceli Martínez-Olguín. At the same time, on August 3, she plans to hold a hearing on the demands of the attorneys general of several states and the Writers Guild of America, who are seeking further blocking of the deal until the trial is completed.
Paramount insists that the merger will withstand legal challenges and is asking for a separate three-day hearing with evidence and testimony. The company claims that the combination will strengthen competition in Hollywood and help compete more effectively with Netflix and Amazon.
Delaying the process could cost Paramount dearly
Meanwhile, representatives of the states are demanding that the deal be suspended as soon as possible until the case is resolved, which is scheduled for April next year. The judge also instructed the parties to try to reach a compromise by July 24.
As Bloomberg notes, delaying the process could cost Paramount dearly. According to the terms of the agreement, starting October 1, the company must pay Warner Bros. shareholders about $7 million daily until the merger is completed. If the deal is ultimately blocked due to antitrust claims, either party can withdraw from it starting June 2027, and Paramount will have to pay Warner Bros. an additional $7 billion.