On a call around 9 p.m. on Thursday, Jeffrey Kessler, the top trial lawyer for Paramount, made a stunning proposal that could stall the company's $111 billion merger with Warner Bros. Discovery well into next year, according to sources familiar with the matter.
Kessler, known for his role in antitrust cases, argued that the deal's structure might violate federal competition laws, prompting an immediate pause in negotiations. The proposed merger, first announced in early 2026, would have created the world's largest media conglomerate.
Paramount's board is now reviewing Kessler's concerns, with a formal statement expected within days. Warner Bros. Discovery declined to comment. The pause has already affected stock prices, with Paramount shares falling 4% in after-hours trading.
