UPDATE: Ellison’s confidence just got more regulatory cover — Britain’s regulator and culture secretary have now stood down, bringing the global count to 66 clearances with only the 12-state suit left.
The Paramount takeover of Warner Bros. Discovery is frozen in court, but nobody on the buying side is acting like the deal is dead.
Ellison Tells Staff The Merger Will Happen
Paramount CEO David Ellison sent a companywide memo Monday morning projecting confidence that the $111 billion acquisition will cross the finish line, writing that “we remain highly confident that this transaction does not pose any legal issues” and that the two companies will be brought together.
Ellison argued the facts and the law favor Paramount’s side and that a full hearing will show why the plaintiffs shouldn’t prevail, told staff it remains business as usual, and closed the memo with a rallying cry of “Let’s go!”
Ellison also pointed to the deal’s global track record, with regulators across 65 jurisdictions, including the European Commission, China, and the U.S., having cleared the transaction or declined to challenge it.
The U.S. courtroom is the last real obstacle, where twelve state attorneys general led by California’s Rob Bonta are suing to block the deal, with the WGA also in the fight.
The memo follows Friday’s big development: Paramount, WBD, the state attorneys general, and the WGA agreed to skip the preliminary injunction hearing that had been set for August 3 and move directly to a trial on the merits.
Paramount says it will not close the deal until June 2027 or five days after the court rules, whichever comes first, and the delay will cost the company upwards of $7 million a day payable to WBD shareholders starting October 1.
Trial dates are being discussed with the states now, with an update promised Friday.
Belloni: All The Way To The Supreme Court
Puck’s Matt Belloni doesn’t see the Ellisons blinking either.
Speaking on The Town, Belloni said he is skeptical they will ever walk away from the deal.
“They are going to go until the Supreme Court either decides in their favor, tells them to get lost, or declines to take the case,” said Belloni.
Belloni did stop short of predicting Paramount wins on the merits, noting the outcome still hinges on the judge’s ruling and any appeals that follow.
Inside Warner Bros., Some Are Rooting Against It
Variety reports that some top executives at Warner Bros. Discovery are privately hoping the twelve states win in court and kill the deal, with a sizable contingent at the studio opposed to the merger.
Those executives should be careful what they wish for.
As CBN exclusively reported, and as insiders have since reiterated to me, if the merger doesn’t happen, Warner Bros. gets broken down and sold off in pieces.
There is no version of this where WBD simply carries on as it was.
What It Means For DC
For DC fans, this trial is everything.
As CBN exclusively reported, the SnyderVerse is back in play as the De Luca-Abdy era takes shape, with Snyder gung ho about adapting The Dark Knight Returns and finishing his Justice League arc once the deal is done.
Snyder said it himself at the Frank Miller event: the movie happens “when they let us.” Right now, “they” is a courtroom.
