NEW YORK— Paramount Skydance has agreed to a deal with 12 state Attorneys General to delay its merger with Warner Bros. Discovery. The deal means that the $111 million deal is on hold until a judge issues a ruling in the case or the trial is completed in June 2027 on the states’ antitrust lawsuit.
U.S. District Judge Araceli Martínez-Olguín in the U.S. District Court of California, Oakland Division issued a temporary restraining order on July 20 pausing the case until she ruled whether to issue a preliminary injunction that would put the merger on hold until a trial is completed.
The new agreement extends the temporary restraining order for another 14 days and means that Paramount won’t be able to close the deal until at least August 18 at the earliest and possibly much longer.
If the court finds in favor of the states and issues a preliminary injunction, the deal could be delayed until completion of a trial in June of 2027.
“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,” said California Attorney General Rob Bonta who is one of the AGs who filed the antitrust lawsuit. “Today’s agreement is great news for audiences, movie theaters, and the many people who write, build, and create the art, news, and entertainment so many of us enjoy. We are eager to continue to make our case in court and celebrate another tremendous win in our effort to ensure this unlawful merger never sees the light of day.”
The deal was approved by the Trump administration’s Department of Justice but Attorneys General from 12 states quickly sued to stop the merger on grounds that it would violate federal antitrust law, leading to higher prices for film and cable audiences and resulting in fewer movies and TV shows.
Delays in completing the merger until the summer of 2027 could be costly for Paramount and raised concerns on Wall Street about the future of the deal. Paramount Skydance stock fell by 3.3% on Friday July 24.
Paramount, however, called the agreement a “significant win.”
“The result is exactly what we have sought from the outset: a direct path to a trial based on the evidence,” it said in a statement. “This is the fastest and clearest way to prove that this transaction is good for competition, good for consumers, and good for creators, a conclusion dozens of competition authorities around the world have already reached. Plaintiffs’ market definitions bear no relationship to the realities of today’s marketplace and cannot withstand scrutiny. We look forward to proving our case at trial.”
