Paramount and Warner Bros. Discovery have agreed to delay closing their $81 billion merger until at least mid-2027, according to ABC News. The move comes after U.S. District Judge Araceli Martínez-Olguín granted a temporary restraining order freezing the transaction, citing "serious questions" about competition raised by 12 states seeking to block the deal.
Paramount said in a court filing Friday that it will not close the merger until either a court rules on the states' claims or June 1, 2027, whichever comes first. Both sides described the delay as a win.
Paramount, which was acquired by Skydance just last year, said the outcome was "exactly what we have sought from the outset: a direct path to a trial based on the evidence." The company added that it looked forward to proving its transaction is "good for competition, good for consumers, and good for creators."
California Attorney General Rob Bonta, who is leading the coalition of states, called it a victory for audiences and workers across the entertainment industry. "Our argument against this illegal merger is straightforward: When too few corporations have too much power in markets central to American life, it makes things more expensive, and it makes things worse," Bonta said. He added that the states were eager to pursue the case through trial and ensure the combined company "never sees the light of day."
The states, which include California and New York, sued last week arguing the merger would "extinguish competition" in Hollywood and reduce choices for consumers, particularly moviegoers and cable subscribers. A preliminary injunction hearing that had been set for Aug. 3 was canceled. The dispute is now headed toward a full antitrust trial.
The Writers Guild of America has also filed its own separate lawsuit to block the deal, saying it would cause specific harm to film and television writers. The delay gives that case more time to proceed through court as well.
A combined Paramount-Warner would bring together two of Hollywood's last five legacy studios along with a large portfolio of television networks including CNN. Warner's HBO Max streaming service, along with properties such as "Harry Potter," would join CBS, Paramount+, and titles like "Top Gun" under one corporate roof.