Paramount CEO David Ellison is facing mounting obstacles to closing his $111 billion (£87 billion) acquisition of Warner Bros Discovery, after losing a court battle this week over the start date for an antitrust trial brought by a coalition of state attorneys general and the Writers Guild of America. The setback marks the first serious threat to the mega-merger since Ellison outbid Netflix for WBD earlier this year, compounding concerns over the declining net worth of his father and financial backer Larry Ellison, and the roughly $80 billion in debt a combined Paramount-Warner Bros Discovery would carry.

There has been some positive news, including UK government approval of the deal on the day of publication, joining more than 60 jurisdictions, including the United States, that have already signed off. A federal judge also dismissed a separate consumer complaint against the merger this week, though claimants may refile. However, Paramount faces a $650 million-a-quarter fee to WBD shareholders starting next month while the deal remains unresolved, a June 2027 deadline for completion, and a $7 billion termination fee if the transaction collapses for regulatory reasons. Hollywood guilds and industry figures also remain sceptical that Ellison will honour his promises on theatrical releases and jobs, adding further pressure as commentators speculate on ways he might rescue the deal, including potentially engaging with political figures such as Kamala Harris.