Paramount WBD merger paused as David Ellison tells staff deal will close
David Ellison told Paramount staff he is confident the WBD deal will survive legal challenges as the companies head toward trial.
By Georgia Hale · Staff Writer
3 min read
Paramount Skydance CEO David Ellison told employees he remains confident the Paramount WBD merger will close, even as legal challenges have pushed the deal off its expected timetable, according to a staff memo obtained by Deadline.
Ellison wrote that the proposed combination with Warner Bros. Discovery does not create legal problems and that the companies still expect to complete it. He also thanked staff for their patience during a stretch of court filings, delays and uncertainty around when the transaction can finish.
The deal is now paused after a lawsuit from 12 state attorneys general, led by California Attorney General Rob Bonta, sought to block the merger on antitrust grounds. The Writers Guild of America has also filed a separate lawsuit seeking to stop the transaction, according to Ellison’s memo.
Why is the Paramount WBD merger delayed?
The merger is delayed because the state attorneys general and the WGA are challenging it in court. Ellison told staff that, without those lawsuits, Paramount would have been able to close the transaction in the coming weeks.
A court-ordered preliminary injunction hearing had been scheduled for August 3, but the parties have agreed not to proceed with that hearing, according to the memo. Instead, Paramount, WBD, the state attorneys general and the WGA will move straight to a trial on the merits.
Deadline reported that Paramount agreed Friday to skip the preliminary injunction fight and go directly to trial. The company is seeking a November start date for proceedings, while the attorneys general want a January date, according to the report.
Ellison told staff the parties are expected to discuss possible trial dates this week and update the court on July 31. The judge will set the schedule after reviewing those discussions, according to the memo.
What Ellison told employees
Ellison framed the legal delay as a hurdle, not a deal-breaker. He told employees Paramount’s leadership and legal advisers have worked with antitrust and competition authorities in multiple countries over recent months.
According to the memo, regulators and governments representing 65 jurisdictions have either cleared the transaction or chosen not to challenge it on competition or foreign direct investment grounds. Ellison listed the European Commission, Australia, China, the U.S., Germany, France, Spain, Canada and South Korea among them.
Ellison said those clearances support Paramount’s position that the combination fits antitrust law and would create a stronger media company. He also said the merged company would have more scale to invest in storytelling, consumer choice, content and technology.
For employees, the near-term instruction is steady as she goes. Ellison said Paramount and WBD remain separate companies that are operating independently while the deal is paused.
He also said integration planning will continue through the Integration Management Office and legal advisers, though the pace and order of that work may shift because of the revised timeline. Employees involved in integration planning will hear from Tony Driscoll, who leads the Integration Management Office for Paramount, according to the memo.
Ellison told staff that Paramount would share meaningful, confirmed updates when available. Until then, he said the company’s focus remains on audiences, employees supporting one another and carrying out Paramount’s strategy.
This story draws on original reporting from Deadline.