If there’s one thing I’m really tired of thinking about, it’s the ensuing Hollywood nightmare of the Paramount-Warner Bros. merger. I would rather it not happen at all, of course. But at the very least it’s not going to be an easy prospect for Paramount CEO David Ellison. After the recent postponement following a 12-state coalition subpoenaed to stop the sale due to antitrust laws, we assumed a trial date would come shortly. Paramount was pushing for November. But to the chagrin of Ellison and his company’s pocketbook, the trial will instead start in March of 2027.
This, according to The Hollywood Reporter, will be roughly five months after Paramount has to start paying Warner Bros-Discovery for not buying them. Part of the agreement about the merger was that Paramount would to pay $7 million per day to WBD beginning October 1 if the deal hadn’t closed by then. So confident were they that the justice department would let it skate through. If the trial began in early November, Paramount would only have to pay $220-ish million. Now, with the trial beginning March 2 and lasting 12 days, plus the time it takes to reach a decision and close, Paramount will have to pay something like $1.5 billion.
And—let’s say—the deal isn’t closed by June of 2027. Like maybe the judge sides with the 12 states. Or if they just can’t get it together before then. Well, WBD then has the option to terminate the agreement and collect a $7 billion fee from Paramount. While the coalition team wanted the trial to start in April, March is definitely more on their side than the November Paramount wanted.
“We respect the court’s decision and continue to believe a trial on the merits is the best and most direct way for us to prove what we’ve said from the start – this transaction is lawful, pro-competitive, and raises no antitrust concerns,” a Paramount spokesperson said in a statement. “The lawsuit against us has no basis in fact, economics or antitrust law. We will continue to vigorously defend the transaction and remain committed to closing as soon as possible so its benefits for the creative community and consumers can be realized.”
We will, of course, keep you up to date on this whole thing. Hopefully we get a few months of peace while we wait.
Kyle Anderson is the Senior Editor for Nerdist. He hosts the weekly pop culture deep-dive podcast Laser Focus. You can find his film and TV reviews here. Follow him on Letterboxd.