Skydance-owned Paramount and Warner Bros. Discovery agree to delay closing their roughly $81 billion merger while a judge considers a challenge brought by 12 U.S. states, led by California. Multiple outlets report that the companies reached this delay after the states allege the combination would harm competition in Hollywood.
According to reporting on a court filing, Paramount says it will not close the deal until either the court issues a ruling on the merits of the states’ lawsuit or a specified deadline of June 1, 2027. The delay extends the timeline well beyond an earlier planned closing, and it keeps the transaction under judicial review rather than moving forward immediately.
While the outlets describe the states’ claims in general terms—focused on competition concerns—the reporting indicates that the litigation is still being considered by the court and that the parties’ agreement is intended to accommodate the review process. The decision postpones consummation of the transaction pending the court’s decision or the later date specified in the filing.
