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Bryan Sullivan Discusses the Potential Delay in the Paramount-Warner Bros. $110 Billion Merger Due to State Antitrust Suit in TheWrap
Bryan Sullivan recently spoke with TheWrap about the long-awaited Paramount deal to acquire Warner Bros. Discovery, which could potentially be delayed due to 12 state attorneys general filing a lawsuit challenging the $110 billion merger.
The article, titled “Paramount-Warner Bros. May Face Devastating Delay With State Antitrust Suit | Analysis,” outlines the lawsuit’s allegation that the deal would reduce competition, giving the combined company ultimate power.
A federal judge temporarily halted the transaction, and if a restraining order is granted, could alter Paramount’s self-imposed September 30, 2026 deadline, leaving them responsible to pay a daily “ticketing fee” to shareholders. This would amount to roughly $650 million each quarter. Paramount argues that the lawsuit fundamentally exposes flawed application of antitrust laws. However, the states may have a high probability of obtaining the restraining order.
Bryan tells TheWrap that he can see the merits of the arguments on both sides, but agrees the states likely have enough to warrant an injunction.
“The court typically looks at the potential harms on both sides, and the ticketing fee would be a factor,” Bryan explains.
He goes on to validate Paramount’s argument regarding the threat of big tech, while maintaining that the case will come down to a statistical analysis of the harms in each of the states that are suing.
“Given the whole nature of the entertainment industry being upended in the last several years, this is a case where both sides have good arguments to make,” he concludes.