Paramount, WBD merger on hold due to temporary restraining order
The future home of AEW being confirmed will have to wait a bit longer.
On Monday, a California judge granted a temporary restraining order brought by U.S. state attorneys general last week in a lawsuit regarding the Paramount/WBD merger, putting things on hold for 14 days.
The group that includes Nevada, Massachussetts, New York, New jersey and others said the merger would violate an antitrust act that is more than 100 years old, claiming it would be anticompetitive.
While WBD didn’t comment publicly, Paramount did, stating among other things that the “merger is lawful, pro-competitive, and will benefit consumers, creators, workers, and the entertainment industry.”
A Paramount attorney said the request for the restraining order was filed last week after the company indicated the deal was expected to be closed as early as this Wednesday. Another temporary restraining order or injunction order could be filed.
CNBC noted that another mega-merger deal — Nexstar Media and Tegna’s $6.2 billion merger — is also on pause after a similar lawsuit and injunction. A trial for that lawsuit is scheduled for the middle of 2027. California’s Rob Bonta also filed that lawsuit.
If it doesn’t close by the end of September, WBD shareholders would get an additional 25 cents per quarter until it closes, totaling roughly $650 million per quarter. If the deal doesn’t happen due to regulatory issues, Paramount agreed to pay WBD $7 billion as part of the agreement.
AEW’s current deal with WBD runs through 2027 with a one-year extension option held by WBD. AEW head Tony Khan has been unsurprisingly complimentary of Paramount Skydance head David Ellison and the future of AEW with Paramount.
Since 2011, Josh has been a contributing editor to Wrestling Observer/F4WOnline.com and also hosts the Punch-Out podcast. He has also written for Fight Magazine, Bloody Elbow, Bleacher Report, and other websites. He's a 2000 graduate of the University of Maine, worked in pro sports, and once was an indie ring announcer.