Paramount Agrees to Delay Warner Bros. Discovery Buyout For Months

A federal judge approved the hold until trial or June 2027, as 12 states and writers guild advance antitrust fight.

Paramount Pictures Studios in Los Angeles on April 28, 2026. John Fredricks/The Epoch Times

Paramount Skydance Corporation has agreed to postpone its $110 billion acquisition of Warner Bros. Discovery for at least several months, if not well into 2027, as a federal judge in California weighs antitrust challenges from a dozen states and the Writers Guild of America.

In a Friday court filing, the company said it will not conclude the deal until an antitrust trial ends or until June 1, 2027. U.S. District Judge Araceli Martínez-Olguín approved the agreement accepted by the parties.

The agreement ends a planned Aug. 3 hearing on the states’ request for a preliminary injunction and withdraws a similar motion filed by the Writers Guild. Lawyers for Paramount determined the plaintiffs would likely be victorious at that stage and decided it was better to move straight to a full trial on the merits, according to people familiar with the discussions.

“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,” Paramount said in a statement sent to media outlets. “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.”

Paramount did not immediately return a request for comment.

The company called the arrangement a “significant win,” because it is a direct path to trial based on the evidence.

California Attorney General Rob Bonta, whose office is spearheading the state coalition, pushed back on the decision Friday.

“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 in a statement. “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 12 states filed the suit on July 13. They are California, Arizona, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon, and Washington. The states argue the merged company would own nearly a third of theatrical motion pictures and a third of cable programming, including dozens of the most popular channels, which would lead to higher prices and leaving consumers with fewer choices.

Bonta had earlier framed the fight in blunt terms while standing in Griffith Park with the Hollywood sign behind him.

“[Paramount Skydance CEO] David Ellison may think this is an offer we can’t refuse,” he told reporters. “But I’m here to say, he’s wrong.”

Responding to the original lawsuit, a company spokesperson said the states’ action “in the most generous light, reflects a fundamentally flawed application of the antitrust laws and is wrong on both the facts and the law.”

The company argues the deal would create a stronger, more capitalized studio that can compete with streamers such as Netflix.

Paramount had wanted to complete the deal by the end of September. After Sept. 30, Paramount will owe Warner Bros. Discovery shareholders a quarterly “ticking fee” of 25 cents per share for every quarter the deal remains incomplete.

The Justice Department closed its probe last month and found the merger was not likely to harm competition in streaming, linear television, or theatrical films. Officials said it could “increase competition across the media and entertainment ecosystems, with benefits for American consumers and workers.”

The European Commission granted conditional approval this week, requiring Paramount to back out of a film distribution joint venture with Universal in Europe.

The parties must now submit a proposed trial schedule by next Friday. If Paramount loses at the district court level, the agreement could hasten an appeal to the 9th U.S. Circuit Court of Appeals and possibly even the Supreme Court in 2027.