The delay, filed in court Friday, could cost Paramount $1.7 billion in fees if the deal is not completed by next June.
Published July 24, 2026
Paramount Skydance has agreed to suspend its $110 billion acquisition of Warner Bros. Discovery until a federal judge rules on state challenges to the deal, according to court documents.
The delay, filed in court Friday, could cost Paramount Skydance about $7 million a day in fees it has agreed to pay to Warner Bros. shareholders if the merger is not completed by Sept. 30.
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A Paramount spokesperson said: “We look forward to proving our case in court.”
Twelve states, led by California, filed a lawsuit on July 13, arguing that the deal would “eliminate competition” in Hollywood and reduce choice for consumers, especially moviegoers and cable TV customers. Paramount called the states’ claims moot and vowed to “vigorously defend” the merger.
New York Attorney General Letitia James, who is suing to block the deal, said: “Stopping this merger while litigation is ongoing is a decisive victory in our efforts to abide by the law and protect the film and television industry.”
Friday’s move came just days after U.S. District Judge Araceli Martinez Holguin granted a temporary restraining order from states seeking to freeze trading for several weeks.
The companies agreed to suspend the agreement until the earlier of five days after the judge rules on the merits or June 1, 2027. If the deal is delayed until then, Paramount could pay Warner Bros. shareholders up to $1.7 billion in ticking fees.
A review of recent cases by Reuters found that judges took an average of eight months to rule on similar merger cases.
Additionally, as a result of the merger, CNN, which is currently part of Warner Bros., will become part of Paramount, which has raised concerns about a squeeze on the media. The latter already owns CBS, but there has been considerable turmoil over allegations that its father, tech billionaire Larry Ellison, was biased in favor of US President Donald Trump under CEO David Ellison, a Trump ally.
