
A court hearing in Oakland brought forth a report of the economic damage the Paramount-Warner merger can cause. In the report from the Los Angeles County of Department of Economic Opportunity (DEO), the merger will see the loss of 15,567 corporate jobs, 6,099 shared and 2,495 in Los Angeles County alone.
The report also calculated the lost wages the merger will bring, which totaled to $1.66 billion in wages, $2.78 billion in economic value (the maximum amount willing to pay for service) and $4.06 billion in business output (the financial value of companies products).
With this report, the merger timeline has been extended to June 2027, which means a delay cannot be enforced during now and that time frame. The extension is to allow both parties in the case to prepare and assess the damages the merger can cause from the information gathered in the report. The trial is set for March 2027 and has yet to appoint a judge to mediate the trial.
Just recently on Monday, CEO of Paramount-Skydance, David Ellison, appeared in front of Judge Araceli Martinez-Olguin to motion for 1.88 billion bond to cover the ticking fees during the delay of the trial. Starting October 1st, Paramount will have to cover $7 million a day to investors of the company. Since the delay for the merger and trial push to March of next year, Paramount is predicted to pay $1.8 billion in losses.
