Paramount Skydance has agreed to postpone its acquisition of Warner Bros. Discovery for up to 10 months as a court reviews the merger's legality following a lawsuit from California Attorney General Rob Bonta. The merger will not proceed until either the resolution of the legal dispute or June 1, 2027, whichever comes first. This agreement was signed by U.S. District Judge Araceli Martinez-Olguin, who is overseeing the case.
The delay follows a temporary restraining order issued by Martinez-Olguin, which halted the merger until an August 3 hearing. Bonta filed the lawsuit on July 13, arguing that the $110 billion merger would harm competition and negatively impact movie theaters and audiences. The agreement also cancels the scheduled August 3 hearing for a preliminary injunction.
Paramount expressed satisfaction with the agreement, stating it provides a clear path to trial to demonstrate that the merger is beneficial for competition and consumers. Bonta also welcomed the agreement, stating it is a positive development for audiences and creators. The merger had initially been targeted for completion by September, but the new timeline could result in a delay of nine to ten months, potentially increasing the merger's cost. The European Union had previously approved the merger, and it had received clearance from the Trump administration's Department of Justice before the lawsuit was filed.