Paramount-Warner Bros. Merger Hits a Last-Minute Snag as Judge Opens the Door To Deal Opponents

The Paramount-Warner Bros. merger has been one of Hollywood’s most dramatic business sagas of the year, and it just took another unexpected turn. The more than $110 billion deal would combine Paramount’s film and TV studios, CBS, and Paramount+ with Warner Bros.’ studios, HBO, CNN, and other cable networks, according to CNN.

The road to approval has been bumpy. California Attorney General Rob Bonta led 12 states in suing to block the merger in July; a judge issued a temporary restraining order on July 20, and Paramount later agreed not to close until after a ruling on the merits or June 1, 2027. A 12-day trial had even been scheduled for March 2027.

Then everything seemed to change on September 21. Bonta announced a settlement with Paramount, and Warner Bros. Discovery CEO David Zaslav told staff he expected the merger to close no later than early October, while Paramount CEO David Ellison predicted a closing in around 2 weeks.

The terms were substantial but not structural. According to Bonta’s office, the merged company must release 30 films a year, including 20 wide releases, for the first 2 years, then 32 films with 21 wide releases in years 3 through 5, plus at least 4 independent films annually. Variety reported that Paramount also agreed not to sell its studio lots in California for at least 5 years and to invest an additional $300 million a year in U.S. film production, while CNN noted a new editorial independence board for CBS News and CNN.

Only U.S. District Judge Araceli Martínez-Olguín’s approval remained, with a virtual hearing set for Thursday, September 24, at 11 a.m. PT. But just hours earlier, the grassroots Block the Merger coalition filed a last-ditch motion asking for time to formally oppose the consent decree, and the judge granted it.

“All amicus briefs must be filed on the docket by no later than 12:01 a.m. PST on September 25, 2026,” the judge ruled, according to Deadline, which reported that the move makes it almost certain the deal won’t be formally approved that day.

Block the Merger has argued the settlement is weak and unenforceable. In its filing, the coalition raised serious questions about whether the consent decree would wipe out potential claims from citizens in the plaintiff states, and said many of its provisions don’t resolve the antitrust concerns or introduce First Amendment problems.

The group also proposed a briefing schedule stretching to October 13, which Deadline noted would push beyond the start-of-October deadline when Paramount must begin paying Warner Bros. Discovery $7 million per day. Paramount pushed back, describing the proposed briefs as improper.

The settlement has divided even the officials who brought the lawsuit. Connecticut Attorney General William Tong said his office wanted full divestiture of CNN and CBS News but didn’t get it, according to CNN.

Variety pointed out that Bonta had previously insisted that only structural remedies such as divestitures would be enough to end the lawsuit, yet the final agreement contains none. On the other side, industry groups including IATSE and the Directors Guild of America praised the deal for bringing stability and enforceable protections.

For now, the clock is ticking. With amicus briefs due overnight and Paramount facing mounting daily fees after September 30, every day of delay carries a real financial cost.

Whether Judge Martínez-Olguín ultimately signs off quickly or takes more time to weigh the objections could determine when one of the biggest mergers in Hollywood history finally closes, and how much it costs Paramount to get there.

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