Business & Markets
Paramount Skydance agrees to delay Warner Bros. Discovery merger during lawsuit
Paramount Skydance agreed Friday to delay its $110 billion merger with Warner Bros. Discovery while a US lawsuit seeking to block the deal moves forward.
The company said in a court filing that it agreed to delay the deal through June 2027. If completed, the merger would combine large entertainment and media assets under one company, including CNN, Warner Bros. Pictures and the HBO Max streaming service.
California Attorney General Rob Bonta, whose state is leading a coalition of 12 states that sued last week to block the merger, welcomed the agreement. He said the states were eager to continue making their case in court and described the delay as a win in their effort to stop what he called an unlawful merger.
The other states in the lawsuit are Arizona, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon and Washington. All 12 states are led by Democrats. New York Attorney General Leticia James said halting the merger while the case proceeds was a critical victory in efforts to uphold the law and protect the film and television industries.
The Trump administration approved the deal on June 12 without requiring changes. A federal judge in California ordered the companies to temporarily pause the deal on Monday, two days before the European Union gave the merger a conditional green light.
The judge said the states had raised serious questions about whether the deal could be anticompetitive and said the balance of equities and public interest strongly favoured the plaintiff states.
In their complaint, the states claim the combined company would control about 27 percent of wide-release theatrical film distribution and a similar share of basic cable channel licensing. Bonta said last week that combining two of Hollywood's five major film distributors would lead to higher prices, lower quality and less content for audiences.
The dispute has become politically charged. President Donald Trump has publicly said he would weigh in on the deal, as the future of CNN, a network he often criticizes, is part of the merger.
The fight over Warner Bros. began last year, when Netflix and Paramount competed for the movie studio and its back catalogue. The source says many in Hollywood reluctantly supported Netflix as the less harmful option before Paramount kept raising its bid and Netflix walked away in February.
Update
California Attorney General Rob Bonta welcomed the delay and said the states would continue their court case.
The other 11 states in the suit are Arizona, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon and Washington.
New York Attorney General Leticia James said halting the merger while the case proceeds was a critical victory.
A federal judge in California temporarily paused the deal on Monday, two days before the European Union gave the merger a conditional green light.
The judge said the states had raised serious questions about possible anticompetitive effects and that the balance of equities and public interest favoured the plaintiff states.
The states claim the combined company would control about 27 percent of wide-release theatrical film distribution and a similar share of basic cable channel licensing.
California's attorney general said last week that combining two of Hollywood's five major film distributors would lead to higher prices, lower quality and less content for audiences.
The report adds that the deal would include CNN, Warner Bros. Pictures and HBO Max under one company, and describes earlier bidding by Netflix and Paramount for Warner Bros.
Source note: AFP news report published on 24 July 2026 at 21:22:05 UTC.
Update
Paramount Skydance agreed to delay the deal through June 2027, according to a court filing.
The Trump administration approved the deal on June 12 without demanding changes.
A federal judge in California ordered a temporary pause on Monday.
The European Union gave the merger conditional approval two days after the judge's ruling.
The source says the combined company would reshape the entertainment and media industry if the merger closes and would benefit the Ellison family.
Source note: AFP news report published on 24 July 2026 at 20:31:55 UTC.
Update
Paramount Skydance agreed in a Friday court filing to delay the merger while a lawsuit by multiple US states moves forward.
A federal judge in California ordered the companies on Monday to temporarily pause the $110 billion deal.
The judge’s order came two days before the European Union gave the merger a conditional green light.
Source note: AFP news report published on 24 July 2026 at 20:11:40 UTC.
Update
Paramount agreed to delay the Warner Bros. merger.
Source note: AFP news report published on 24 July 2026 at 20:01:13 UTC.
Update
Paramount must end its stake in United International Pictures in the European Economic Area.
For 10 years, Paramount must not directly or indirectly make an agreement with Universal to jointly co-distribute films in the European Economic Area.
The EU said it had no concerns about film production because other competitors remain in Europe, including Disney, Amazon MGM and European studios.
An independent trustee will monitor the commitments under European Commission supervision.
A federal judge in California ordered the companies to temporarily pause the merger this week.
Netflix abandoned its effort to buy Warner Bros. Discovery in February after Paramount Skydance won the bidding contest.
The combined company would include CNN, Warner Bros. Pictures and HBO Max.
Twelve states led by California sued to block the deal after the US Justice Department approved the merger last month.
A US hearing on a preliminary injunction is scheduled for August 3.
Source note: AFP news report published on 22 July 2026 at 18:01:30 UTC.
Uncertainty notes
The merger has been delayed but not finally blocked.
The antitrust claims remain before the court.
Source
AFP news report published on .