Just when it appeared the proposed merger between Paramount and Warner Bros. Discovery had entered its most difficult phase, the company is making one thing clear—it has no plans to slow down. Despite fresh antitrust lawsuits from a coalition of U.S. states and a separate legal challenge from the Writers Guild of America (WGA), Paramount says it is still aiming to complete the deal before the end of September. The latest comments signal that the media giant remains confident the merger will survive its biggest legal test yet.
The proposed transaction has become one of the most closely watched corporate stories in Hollywood this year. If completed, it would reshape the entertainment landscape by combining two of the industry’s biggest studios and streaming businesses. While opponents argue the merger could reduce competition, Paramount insists it will strengthen the industry at a time when traditional media companies are facing mounting pressure from streaming giants.
Paramount Says the Timeline Hasn’t Changed
Speaking to CNBC, Paramount’s lead trial counsel Jeffrey Kessler said the company still expects the merger to close during the current quarter. He stated, “The plan is still to close this quarter before the end of September.” According to Kessler, that timeline could be achieved either through an agreement between the parties involved or if the courts ultimately reject efforts to block the transaction.
Kessler also expressed confidence that Paramount would continue fighting if legal setbacks emerged. He said, “The company believes strongly in this, and they would take this up to the Supreme Court if they had to.” He added that attorney Paul Clement, who is also representing Paramount in the case, is among the country’s leading Supreme Court lawyers, underscoring the company’s willingness to pursue every legal avenue if necessary.
The legal battle intensified after attorneys general from California, New York and ten other states filed an antitrust lawsuit seeking to stop the merger. The states argue that combining Paramount and Warner Bros. Discovery would reduce competition, increase market concentration and ultimately harm consumers, workers and the broader entertainment industry. The WGA later filed its own lawsuit, claiming the deal could reduce employment opportunities, weaken bargaining power and suppress wages for screenwriters.
Paramount Defends the Deal
Paramount continues to reject those allegations, arguing that the merger would actually make the company more competitive in a rapidly changing media business. Kessler said, “This is an antitrust case. To stop a merger, the merger has to be anti-competitive. This merger is pro-competitive.” He argued that traditional television and theatrical businesses have been weakened by streaming and cord-cutting, making consolidation necessary to compete with larger technology-backed rivals.
Expanding on that argument, Kessler said, “This merger is designed to make a stronger linear television company and to make a stronger theatrical producer and to create a true competitor in streaming that can go toe to toe with a Netflix or a Disney or a Prime [Video].” According to Paramount, stronger competition against the biggest streaming platforms would ultimately benefit consumers, theatres and entertainment workers rather than reduce opportunities.
The company also revealed that it had previously offered two possible paths to the states leading the lawsuit. One proposal would have allowed the merger to close once remaining regulatory approvals were secured, while another suggested resolving the legal dispute by early September. Kessler said both options were rejected before the states sought a temporary restraining order to halt the transaction.
What Happens Next?
If a temporary restraining order is granted, the merger could initially be paused for up to 14 days, with the possibility of another two-week extension. Beyond that point, opponents would need to convince the court to issue a preliminary injunction to stop the deal from moving forward while the broader antitrust case continues. Paramount has repeatedly said it does not expect that outcome and believes the courts will ultimately allow the merger to proceed.
The financial stakes are also significant. Paramount previously agreed to pay Warner Bros. Discovery a $650 million quarterly “ticking fee” if the transaction remains pending beyond key deadlines, giving the company a strong incentive to complete the merger as quickly as possible. Although several international regulators have already approved the deal, reviews in the United Kingdom and the European Union are still ongoing. For now, Paramount continues to insist that its target remains unchanged, with the company hoping to complete one of Hollywood’s biggest mergers before the end of September.
