Paramount CEO David Ellison told employees Monday in a companywide memo obtained by Variety that he remains confident the company’s proposed $110 billion merger with Warner Bros. Discovery will ultimately be completed despite an agreement to delay the deal while it defends against antitrust lawsuits.
Paramount announced Friday that the proposed merger will remain on hold while it defends against antitrust lawsuits filed by a coalition of 12 state attorneys general led by California. The delay could push completion of the deal into 2027.
The companies, the state attorneys general and the Writers Guild of America agreed to cancel a preliminary injunction hearing scheduled for Aug. 3 and instead proceed directly to a trial on the merits.
Ellison wrote in the memo sent to employees Monday that “we remain highly confident that this transaction does not pose any legal issues, and we will complete it and bring these two companies together.”
He added: “We believe this is the right path because the facts and the law are on our side, and a full hearing will demonstrate why the plaintiffs’ arguments should not prevail.”
The parties are expected to discuss possible trial dates this week and provide an update to the court by Friday, according to the memo.
Ellison told employees the state attorneys general are expected to seek a trial date in 2027, while Paramount is expected to push for a fall 2026 trial.
“I know this additional uncertainty has been challenging, and I want to thank you for your continued patience, commitment and collective contributions,” Ellison wrote in the memo. “For now, it remains business as usual. Paramount and WBD are separate companies operating independently, and our focus remains on serving our audiences, supporting one another and executing our strategy.”
California Attorney General Rob Bonta said Friday that if the court finds in favor of the states, the merger would be blocked pending appeal.
“Our argument against this illegal merger is straightforward: When too few corporations have too much power in markets central to American life, it makes things more expensive, and it makes things worse,” Bonta said. “Today’s agreement is great news for audiences, movie theaters, and the many people who write, build, and create the art, news, and entertainment so many of us enjoy. We are eager to continue to make our case in court and celebrate another tremendous win in our effort to ensure this unlawful merger never sees the light of day.”
After the states filed suit, the Writers Guild of America sued to block the deal on the grounds it would cause harm to writers and shrink the labor market.
On Wednesday, the WGA filed a bid for a preliminary injunction to halt the takeover.
The union’s motion seeks to bar Paramount and WBD from “closing or otherwise consummating” the deal or taking any further steps to consolidate their operations.
The guild alleges Paramount’s pending acquisition of WBD would reduce opportunities, lower pay and worsen working conditions for writers. The union argues that the elimination of a key competitor and the creation of a dominant firm would reduce the quantity and variety of theatrical films and television series as the merged company would have a greater ability to reduce output.
Furthermore, WGA asserts that the merger would increase the ability of the few remaining companies to tacitly coordinate to further suppress competition for writers’ work.
Also Monday, the Screen Actors Guild-American Federation of Television and Radio Artists announced its support for the lawsuits challenging the merger.
“Our members have every right to expect that the government will do thorough regulatory oversight when a deal of this magnitude takes place. The workers in this industry should not have to rely on promises and aspirational statements,” SAG-AFTRA President Sean Astin said. “These companies have the ability to commit to making more films and shows in this country and they should. This isn’t a conversation about shareholder value, it’s about the survival of the entertainment business in America.”
A Paramount representative previously said the planned merger “is lawful, pro-competitive, and will benefit consumers, creators, workers, and the entertainment industry.”
The company said last week that the European Commission has formally cleared the acquisition, adding to approval from antitrust and competition authorities in the United States, Australia, Brazil, Canada, China, Kuwait, Montenegro, New Zealand, North Macedonia, Saudi Arabia, Serbia, South Africa, South Korea, Ukraine and the regional competition authority for the Common Market for Eastern and Southern Africa.