David Ellison, CEO of Paramount Skydance, expressed confidence that the proposed merger with Warner Bros. Discovery will eventually close, stating the deal does not pose legal issues. In a memo to staff dated Monday and obtained by Deadline, Ellison acknowledged the uncertainty caused by ongoing litigation but thanked employees for their patience and reaffirmed focus on day-to-day operations. The merger, initially expected to close in the third quarter, is now on pause following lawsuits from 12 state attorneys general led by California's Rob Bonta and a separate suit by the Writers Guild of America, both aiming to block the transaction on antitrust grounds. Instead of proceeding with a preliminary injunction hearing scheduled for August 3, the parties agreed to move directly to trial. Trial start dates are under discussion, with Paramount seeking November and the attorneys general pushing for January. An update will be submitted to the court by August 31, after which the court will set the trial schedule. Regulatory clearances have been obtained from authorities in 65 jurisdictions, including the U.S., European Commission, China, and South Korea, which Ellison cited as evidence of the deal's compliance with antitrust laws. He emphasized that the combined company would have greater scale to invest in content, support creators, and compete in the evolving entertainment landscape. For now, Paramount and WBD remain separate entities operating independently.
The decision to skip the injunction hearing and go straight to trial suggests both sides expect a definitive legal ruling will settle the merger's fate. With trial dates still undecided and proceedings months away, employees and investors face prolonged uncertainty despite executive assurances. The outcome hinges on whether courts accept that global regulatory approvals outweigh domestic antitrust concerns.
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