The Warner lawsuit won't go to trial until 2027, and the wait will cost Paramount billions.

The legal battle over the proposed merger of Warner Bros. Discovery with Paramount Global has been postponed until March 2, 2027, according to a court order issued by Judge Araceli Martinez-Olguin of the U.S. District Court for the Northern District of California. The trial will span twelve days, beginning on March 2 and concluding on March 19, with two days, March 8 and 15, reserved for procedural matters rather than active litigation. A final ruling in this antitrust case is thus expected no earlier than spring 2027. The parties are set to meet for an initial hearing on August 19 to discuss procedural steps. The delayed start date represents a compromise between competing demands. Paramount had pushed for an early start in November 2026, while the suing states and the Writers Guild of America (WGA) had initially requested a later start date of April 5, 2027. According to Variety, both sides agreed to the current schedule after negotiations. Twelve U.S. states, led by California’s Attorney General Rob Bonta, along with the WGA, filed separate lawsuits against the merger under case number 4:26-cv-07116. Both cases are being consolidated under one proceeding. Until a decision is reached, the merger must remain pending. The plaintiffs argue that the merger threatens competition in major film releases. The U.S. government approved the deal without conditions, whereas the European Union imposed requirements. As part of these conditions, Paramount has committed to exiting its joint venture with NBCUniversal, known as United International Pictures, within 13 months of the acquisition. For Paramount, the delay carries financial consequences. To secure shareholder support for the deal, the company had promised additional payments for each quarter after September 30, up until the merger’s completion. These payments amount to approximately $650 million per quarter, which would total around $1.2 billion by the time the legal process concludes. This added cost reflects the uncertainty surrounding the merger's approval. Additionally, the timing is tight. Warner Bros. Discovery and Paramount have set June 4, 2027, as the deadline for completing the transaction. If this deadline passes without resolution, Warner Bros. Discovery can terminate the agreement and claim a penalty of $7 billion. However, both parties retain the option to extend the deadline. In a recent op-ed published in the New York Times, Paramount’s CEO David Ellison defended the merger, arguing that the combined entity would control less than 20% of U.S. television viewing and compete effectively with streaming giants such as Netflix, Amazon, and Apple. His comments mark the first public defense of the $111 billion merger by top executives.