Paramount-Warner Bros. antitrust trial set for March 2027 as Q2 profit slips to $41 million

Trial date set for March 2027

U.S. District Judge Araceli Martínez-Olguín issued a scheduling order on Tuesday setting the antitrust trial over Paramount's acquisition of Warner Bros. Discovery for March 2 through March 19, 2027. The 12-day trial is considerably later than Paramount had sought; the company requested a November 2026 start, while the coalition of 12 state attorneys general and the Writers Guild of America, which sued to block the deal, proposed April 2027. A final pretrial conference will be held on February 24, 2027, and the parties must submit a joint case management statement by noon on August 13, 2026.

Paramount will begin paying Warner Bros. shareholders $7 million a day starting September 30 until the transaction closes. In its filing, the company argued that the delay "prejudices the creative industry, the individuals who work within it, and the consumers who benefit from it."

Earnings: profit falls despite revenue uptick

Paramount Skydance reported second-quarter net earnings of $41 million, or four cents per share, down from $57 million, or eight cents per share, in the same period a year earlier. Total revenue rose 1% to $6.91 billion, roughly in line with Wall Street forecasts. The TV Media unit, the company's largest segment, saw revenue fall 9% to $3.12 billion, with advertising revenue down 14% and distribution fees down 6%, reflecting ongoing linear subscriber erosion and tough comparisons with NCAA advertising in 2025.

Streaming momentum and cost savings

Streaming revenue climbed 9% to $2.5 billion, driven by a 16% increase in Paramount+ revenue. The service added 2 million subscribers in the quarter, reaching 81.6 million worldwide. The company called it the best quarter for retention in Paramount+ history, crediting content such as the FIFA World Cup across six Latin American countries.

Q2 was our best quarter for retention in Paramount+'s history, powered by Dutton Ranch, UFC, and the FIFA World Cup non-exclusively across six countries in Latin America, gaining ~2 million new Paramount+ subscribers in the quarter to reach 81.6 million worldwide.

Paramount raised its full-year 2026 adjusted EBITDA outlook to a range of $3.8 billion to $3.9 billion and said it expects over $2.7 billion in cost savings by the end of 2026, above its previous projection. It continues to target more than $3 billion in efficiencies from the Skydance-Paramount combination.

Merger outlook and legal battle

The deal, announced in February, is valued at $110 billion according to Deadline and $111 billion per Variety, while the Wall Street Journal reported an $81 billion figure. The 12-state coalition, led by California Attorney General Rob Bonta, filed suit on July 13 alleging the merger would unlawfully reduce competition in basic cable and theatrical distribution. The Writers Guild of America filed a separate suit the next day, arguing it would harm the marketplace for writers. Paramount contends the combination will create a stronger competitor to Netflix and Amazon Prime.

CEO David Ellison expressed confidence the transaction will close.

While there is still significant work to be done, our confidence in the opportunity continues to grow, and we're excited for the future of this company powered by storytelling and accelerated by technology.

With the merger paused, one analyst noted that the "merger pause shifts Wall Street focus to standalone execution." Paramount said it continues to prepare for the combination while executing its standalone strategy.