Paramount CEO David Ellison has publicly criticized 12 state attorneys general for their antitrust lawsuit halting a massive $111 billion merger with Warner Bros. Discovery (WBD), even as Mexico joins 68 global jurisdictions in approving the deal. In a Friday news release, Paramount argued that the ongoing litigation imposes needless financial costs and business disruption, warning that a ticking fee of $7 million a day to WBD shareholders begins on October 1.
The Legal Battle and State Opposition
The high-stakes antitrust challenge was filed on July 13 by prominent officials including California AG Rob Bonta and New York AG Letitia James. U.S. District Judge Araceli Martínez-Olguín subsequently scheduled a two-week trial to commence on March 2, 2027. While Paramount’s legal head Makan Delrahim maintains that everything is on the table for a settlement, state prosecutors remain firm in their opposition, citing potential job cuts, lower wages, and reduced market competition.
Financial Pressures and Global Approvals
While regulators in the European Union, United Kingdom, China, and now Mexico have greenlit the combination, the domestic legal hurdle threatens billions in additional penalties and debt for the studio. Paramount asserts that the 12 state AGs are ignoring the broader economic benefits of the merger, while labor unions like the Teamsters and the WGA continue to demand concrete employment guarantees amid potential relocation threats away from Hollywood.
