Paramount-Warner Bros Merger Hits Major Roadblock As Deal Put On Hold Until 2027

Paramount Skydance’s planned $111 billion merger with Warner Bros. Discovery has been delayed after the company agreed to wait until an antitrust case moves forward. The deal will not close until after a trial takes place or until June 1, 2027, whichever happens first.

The agreement was reached between Paramount and a group of 12 state attorneys general who are challenging the merger in court. According to court documents, both sides submitted a joint agreement on Friday that prevents the transaction from being completed until there is a decision in the ongoing legal battle.

The delay comes after the states previously secured a temporary restraining order blocking the merger from closing for 28 days. The coalition, led by California, argues that combining Paramount and Warner Bros. Discovery could reduce competition in both the cable and movie industries.

New York Attorney General Letitia James said stopping the merger while the case continues is an important step. “Halting this merger while our case proceeds is a critical victory in our efforts to uphold the law and protect the film and television industries,” James said in a statement. She added that she plans to continue fighting against the deal.

Opponents of the merger have also celebrated the delay. Norm Eisen, co-founder of the Democracy Defenders Fund and part of the #BlocktheMerger campaign, described the agreement as a major moment for those trying to stop the transaction.

“This collective resistance is turning the tide,” Eisen said, arguing that the merger could harm creative freedom, independent journalism and competition.

Paramount Skydance, however, sees the delay differently. The company said the agreement gives both sides a clearer path toward a trial where it can defend the merger and argue that the deal benefits the industry.

A Paramount spokesperson called the agreement “a significant win” and said, “This is the fastest and clearest way to prove that this transaction is good for competition, good for consumers, and good for creators.”

The company also pushed back against the states’ arguments, saying their concerns are based on outdated views of the entertainment market. Paramount argued that competition authorities in other countries have already approved the deal and that it expects to prove its case in court.

The legal fight has already changed the timeline for the merger. Paramount originally wanted a quick hearing on the state’s request for a preliminary injunction in late August, but the states argued they needed more time to gather evidence and prepare their case.

A hearing that had been scheduled for August 3 in federal court in Oakland has now been canceled after both sides agreed on the new timeline. The Writers Guild of America had also filed a separate request to block the merger, but that motion was withdrawn after Paramount agreed not to close the deal before the court reviews the antitrust claims.

The companies are now preparing for a longer legal process. The states had previously suggested holding the trial in April 2027, while Paramount had hoped to complete the merger before September 30. After that date, the company could reportedly face a $7 million daily payment to Warner Bros. Discovery investors under the terms of the agreement.

For now, one of Hollywood’s biggest potential mergers remains on hold. The final decision will depend on whether Paramount can convince the court that the deal will not harm competition or whether regulators succeed in blocking the transaction entirely.

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