Paramount expects WBD merger to close by September despite lawsuits

Paramount remains confident its proposed merger with Warner Bros. Discovery will close before the end of September despite mounting legal challenges, with the company's lead attorney saying it is prepared to take the case to the US Supreme Court if necessary.

Speaking to CNBC, Paramount lead trial counsel Jeffrey Kessler said the company still expects the deal to close during the current quarter, even after a coalition of state attorneys general filed an antitrust lawsuit seeking to block the transaction.

Paramount confident merger will proceed

Kessler said Paramount's target remains completing the merger before September 30, either through an agreement with the states or by defeating their legal challenge in court.

He added that if lower courts block the transaction, Paramount would appeal the decision, saying the company would "absolutely" take the case to the Supreme Court if required.

According to Kessler, Paramount had proposed either closing the merger once regulatory clearances are received or agreeing to an expedited legal timetable through early September, but the states instead sought a temporary restraining order.

Company argues deal is pro-competitive

Kessler argued the merger would strengthen competition rather than reduce it, citing the challenges facing the traditional entertainment industry.

He said linear television has been weakened by streaming and cord-cutting, while theatrical film studios continue to face pressure from changing viewing habits.

The merger, he argued, would create a stronger competitor capable of challenging major streaming platforms while supporting the company's television and film businesses.

If a temporary restraining order is granted, Kessler said it would initially delay the merger by up to 28 days. After that period, the states would need to secure a preliminary injunction to continue blocking the deal.

Paramount has maintained that it does not expect the states to meet that legal standard and remains committed to completing the transaction on schedule.