Paramount Asks States to Shoulder Costs of Delaying Warner Bros. Deal

The proposed transaction cannot close before the conclusion of a trial scheduled for March, extending the period in which Paramount and Warner Bros. Discovery remain exposed to legal and deal uncertainty. Paramount is seeking to have states bear the costs associated with the delay, according to The New York Times Business report published August 17.

Warner Bros. Discovery is the named public-company exposure in the story. Its FY 2025 revenue was $37.3B, down 5.1% YoY, with a 1.9% net margin and $0.29 diluted EPS, leaving limited operating cushion as the transaction timeline stretches.

The next markers are the court proceedings, the states’ response to Paramount’s request and any changes to the proposed deal terms or closing timetable. The report does not establish whether the cost request will be accepted or whether the trial will resolve the broader legal challenge.