Paramount Skydance Chief Executive David Ellison isn’t waving a white flag.
As a huge movie fan, I was a little worried when I heard Paramount and Warner Bros. Discovery were hitting some roadblocks with their merger. It seems California’s Attorney General, along with eleven other states, are putting up a bigger fight than expected on antitrust grounds. Apparently, Paramount’s CEO, Bob Bakish, sent out a memo saying he’s still confident the deal will go through in the next few months, but they’re having to adjust their timeline a bit. Hopefully, it all works out – I’m really curious to see what a combined Paramount and Warner Bros. Discovery would look like!
Since the start of July, Paramount’s stock price has fallen roughly 20% because investors are worried about the increasing costs associated with completing its $111 billion deal to acquire Warner Bros. The agreement reached with state attorneys general on Friday, pushing the merger’s completion back until after an antitrust trial – likely in 2027 – further concerned shareholders and some employees.
Paramount Skydance shares closed at $8.03, down 2.19% Monday afternoon.
In a recent memo to the press, Ellison stated clearly that they are certain there are no legal obstacles to this deal and that the merger of the two companies will proceed as planned.
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As a film buff, I’ve been following this case closely, and it looks like the state attorneys general – with California’s Rob Bonta taking the lead – are aiming to get things to trial in 2027. Apparently, they’re strategically planning for that timing, wanting it to happen after the midterm elections.
I’m hearing that people at Paramount and Warner Bros. have been working really hard behind the scenes to get everything ready for these two companies to combine. There was a big push to finalize things this week, or definitely before October, because our CEO, Ellison, didn’t want to end up having to pay Warner’s shareholders any more than necessary.
Paramount has put its plans for a merger on hold. They’ve agreed to wait until after a court trial decides the outcome of an antitrust lawsuit filed by California Attorney General Bonta and several other Democratic state attorneys general. California is being joined in this legal challenge by states including Oregon, Washington, Colorado, Nevada, New Mexico, New Jersey, and New York.
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Almost 1,000 people in the arts and film industries – including well-known names like Ben Stiller, Bryan Cranston, Noah Wyle, Joaquin Phoenix, Kristen Stewart, and Jane Fonda – signed the letter.
Earlier this month, the Writers Guild of America filed a lawsuit claiming the merger would negatively impact writers. This weekend, SAG-AFTRA stated its support for state attorneys general who are working to prevent the merger from happening.
SAG-AFTRA President Sean Astin stated that members deserve strong government review whenever a deal of this size is proposed.
He emphasized that workers shouldn’t have to depend on vague assurances. He clarified this wasn’t about profits for investors, but rather ensuring the American entertainment industry continues to exist.
Teamsters already have spoken out against the deal.
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Following Netflix’s acquisition of Warner Bros., Mike Ellison and his colleagues immediately started planning how to regain lost ground.
Attorney General Bonta, along with other Democratic state attorneys general, believe the agreement breaks antitrust laws that are over a hundred years old. They specifically cite concerns in three areas: major movie releases shown in theaters, highly anticipated blockbuster films, and the increasing concentration of power among cable TV channels.
Judge Araceli Martínez-Olguín, handling the antitrust case brought by Bonta two weeks ago, stated in a recent order that the states suing to block the merger have shown strong evidence it could break U.S. antitrust laws.
Paramount disagrees with that claim. The company, owned by the Ellison family, highlights that it’s already received regulatory approval – including a decision from the U.S. Department of Justice stating its purchase of Warner Bros. Discovery wouldn’t reduce competition.
The agreement received approval from regulatory bodies in 65 countries and regions, such as Australia, China, the European Union, Germany, France, Spain, and Canada. Paramount argues these approvals demonstrate they have acted within the bounds of the law.
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Things were already tough for Paramount Skydance, and we were bracing for a long standstill. Now, it looks like that pause could actually last until next summer, which is really frustrating for those of us following the situation.
In his memo, Ellison said delaying the deal until after a trial before Martínez-Olguín made sense.
After reviewing the case, I’m confident the evidence and legal precedent strongly support our position. I expect a full hearing will clearly show why the opposing side’s claims simply don’t hold water. It’s a solid case, and I’m looking forward to seeing it play out.
2026-07-27 23:31