Paramount Skydance has agreed to delay its planned acquisition of Warner Bros. Discovery, which could see it paused until June 2027.
Paramount Skydance has agreed to delay its US$110 billion acquisition of Warner Bros. Discovery until a court rules on a lawsuit filed by California and 11 other states challenging the merger.
The pause, which could last until next June, increases uncertainty around the deal and may cost Paramount up to US$1.7 billion in delay fees if the merger is not completed by September 30.
State attorneys general, led by California, contend that combining Paramount and Warner Bros. Discovery would significantly reduce competition in film distribution, television, and streaming. They also warned that allowing the companies to complete the transaction before the case is resolved could cause irreversible changes, including layoffs, restructuring, and the integration of assets that would be difficult to unwind.
Paramount has pushed back against those claims, arguing that the merger would strengthen its ability to compete with technology and streaming giants such as Netflix and Amazon. The company maintains that the combined business would benefit consumers by producing more content and operating more efficiently in an increasingly competitive media landscape.
Paramount says it will defend the transaction in court.
