The legal fight over Paramount Skydance’s $111 billion takeover of Warner Bros. Discovery is not going away anytime soon, and the delay could eventually create a major question for AEW’s television future.
On Thursday, U.S. District Judge Araceli Martinez-Olguin extended the temporary restraining order blocking the deal through August 18. The original order was scheduled to last only 14 days, but the additional time gives both sides room to establish how the fight over a preliminary injunction will play out.
According to The Hollywood Reporter, the extension will allow both sides time “to come to an agreement on the schedule and format for legal proceedings on a preliminary injunction.” If that injunction is granted, the Paramount-WBD transaction could remain frozen until the entire lawsuit is decided. The court is currently scheduled to hear arguments on the motion on August 3.
California Attorney General Rob Bonta is leading the coalition of state attorneys general challenging the merger. The lawsuit claims that combining Paramount and Warner Bros. Discovery would violate the Clayton Act and reduce competition across theatrical distribution and television licensing.
The extended order matters to AEW because Warner Bros. Discovery holds the company’s domestic media rights through 2027, with an option for an additional year. Dynamite airs on TBS, Collision airs on TNT, and AEW programming streams through WBD’s platforms under the current agreement.
Nothing about AEW’s existing deal has changed. The concern is what happens if the lawsuit stretches beyond 2027 and AEW reaches its next negotiation while the ownership of Warner Bros. Discovery remains tied up in court.
There is already proof that these cases can drag on. Bonta also challenged Nexstar Media’s proposed $6.2 billion merger with Tegna, and that deal is now on hold with a trial not expected until the middle of 2027.
The Paramount agreement also includes massive financial consequences if the closing continues to be delayed. If the deal is not completed by the end of September, WBD shareholders would receive a total of $6.9 million per day, adding up to roughly $650 million per quarter. Paramount would also owe WBD a $7 billion breakup fee if regulatory issues prevent the deal from happening.
AEW remains secure on TBS and TNT under its current contract, but the company could eventually find itself negotiating with Paramount, Warner Bros. Discovery or a corporation still trapped in a long-running antitrust case. The August 3 hearing will now determine whether this is only a temporary delay or the beginning of a much longer court battle.
How do you think the Paramount-WBD lawsuit could affect AEW when its media rights deal comes up again? Let us know your thoughts and feedback in the comments.
