The planned takeover of Warner Bros. Discovery through Paramount has made significant progress in recent days – yet the outcome of the proceedings in the US remains crucial to the completion of the multi-billion transaction. Whilst the UK has approved the merger following binding commitments, support for the deal is growing within the film and cinema industry. In the US, however, the proceedings are being delayed until spring 2027.

The trial will not begin until March 2027

The relevant US District Court in Oakland has adjourned the antitrust proceedings against the takeover to 2 to 19 March 2027 scheduled. In doing so, the court largely complied with the demands of the twelve US states bringing the action and the Writers Guild of America (WGA), whilst Paramount had been aiming for negotiations to begin much earlier, in November 2026.

The delay has significant economic consequences. Under the terms of the takeover agreement, from 1 October 2026 daily payments amounting to around seven million US dollars until the transaction can be finalised. Furthermore, further competition law notifications may be required in certain countries should existing approvals expire.

The UK has approved the merger

In the United Kingdom, however, a major regulatory hurdle has been overcome. The British Government decided, following legally binding commitments by Paramount to carry out an in-depth review of the takeover.

Among other things, Paramount undertook to safeguard the editorial independence of its linear and on-demand services in the United Kingdom. In addition, the news from Channel 5 organised by CNN International and CBS News remain separate. The UK competition authority, too, CMA concluded that the merger would not significantly impair competition in film distribution, children’s television channels and the streaming market.

Ellison defends the merger

At the same time, the CEO of Paramount said David Ellison has spoken out publicly for the first time on the ongoing antitrust cases. In a guest article for the The New York Times he rejected the accusation that the planned merger would jeopardise the journalistic independence of CNN.

Ellison emphasised that both CNN and CBS News would continue to operate independently in future. At the same time, he argued that the criticism of the deal was based less on competition concerns than on the question of whether he, as the future owner of the news channel, could be trusted.

Strong quarterly results boost Paramount

Paramount also received a boost from its financial results for the second quarter of 2026. According to the company, it recorded Paramount+ the most successful quarter in its history. The number of subscribers rose to 81.6 million, whilst advertising revenue fell by 30 per cent rose.

Among the growth drivers were, amongst other things, the successful „Yellowstone“ spin-off „Dutton Ranch“, UFC broadcasts and the Football World Cup in Latin America. The studios division also returned to profitability.

In his letter to shareholders, Ellison expressed his confidence that the takeover would go ahead, despite the ongoing proceedings. He pointed out that numerous competition authorities around the world had already approved the transaction or had raised no objections.

Support from the cinema industry is growing

Whilst the legal dispute continues, Paramount is receiving increasing support from the international cinema industry.

According to AMC and Cineworld Cinema also said Vue Entertainment in favour of a swift completion of the merger. Vue CEO Tim Richards explained that the industry needed planning certainty and should „speak with one voice“ on this issue.

Previously, the head of Regal had Eduardo Acuña explained that Paramount had offered binding commitments. These include at least 30 cinema releases a year, an exclusive cinema release from 45 days prior to digital distribution and at least 90 days until it is released via streaming. In addition, an annual content budget of at least 30 billion US dollars be guaranteed.

Also Lionsgate has since thrown his weight behind the deal. CEO Jon Feltheimer He described the ongoing uncertainty as a burden on the entire sector and called for a swift conclusion to the proceedings.

The decision will be made in the US

Despite approval in the UK, the antitrust proceedings in the US remain the key hurdle to the planned merger. It is only the trial in spring 2027 that is likely to clarify whether Paramount can actually take over Warner Bros. Discovery.

Until then, the company is not only under considerable regulatory pressure, but must also bear high additional costs as a result of the contractually agreed late-payment penalties.