Despite rumors and speculation to the contrary, James Gunn and Peter Safran are expected to stay on as DC Studios co-CEOs regardless of the WBD/Paramount merger outcome.
According to a new report from The Wrap, the studio "plans to keep Pam Abdy and Mike De Luca at WB in a merged system, alongside New Line's Richard Brener and DC Studios' James Gunn and Peter Safran."
We assumed that the deal was done, but last month, we got word that Paramount Skydance had agreed not to move forward with its multimillion-dollar megamerger with Warner Bros. Discovery until legal challenges are resolved or June 1, 2027, whichever comes first.
If the court decides that the proposed $111 billion takeover violates antitrust laws, it could potentially put the deal in jeopardy.
In a statement, a Paramount spokesperson said the agreement provides a “direct path to a trial based on the evidence.”
“This is the fastest and clearest way to prove that this transaction is good for competition, good for consumers, and good for creators, a conclusion dozens of competition authorities around the world have already reached,” the spokesperson added. “Plaintiffs’ market definitions bear no relationship to the realities of today’s marketplace and cannot withstand scrutiny. We look forward to proving our case at trial.”
This delay could prove very costly for Paramount. Under the merger agreement, Warner Bros. shareholders are owed around $650 million per quarter or $6.9 million per day if the deal hasn't been finalized by Sept. 30.
U.S. District Judge Araceli Martínez-Olguín issued an extension of a temporary restraining order barring Paramount from closing until Aug. 18 at the earliest. In the new filing, both sides agreed to cancel an Aug. 3 preliminary injunction hearing and are set to file a joint statement of their respective cases regarding the scheduling of the trial by July 31.
Assuming the deal does eventually go through, Paramount and Warner Bros. are expected to operate as independent studios, with a commitment to 15 films from each every year, with full 45-day windows before going to premium video on-demand, with longer windows for hit films.
There was never really any solid evidence that Paramount would consider dropping Gunn and Safran, though their current contracts are believed to expire by the end of 2026 or early 2027, when they would be faced with a renew-or-replace decision. While the DCU is in its infancy, Superman was only a moderate box office success, and Supergirl was a costly flop.
Taking these factors into consideration, it was reasonable to wonder whether Ellison and his shareholders might at least consider making some big changes.