Paramount agrees to pause $110B Warner Bros. deal while states’ lawsuit plays out

Paramount Skydance has agreed to pause its $110 billion acquisition of Warner Bros. Discovery until after a federal judge rules on states’ challenge to the deal, according to court papers filed on Friday.

The delay could cost Paramount Skydance around $7 million a day in fees it agreed to pay Warner Bros. shareholders if the merger does not close by Sept. 30.

An aerial view of the Paramount logo on the water tower at Paramount Studios on February 23, 2026 in Los Angeles, California. Paramount Skydance. Getty Images

California and 11 states sued on July 13, arguing the deal would create a media behemoth with ​the power to raise prices in film and television.

The companies agreed to pause the deal until five days after the judge rules on the merits of the case, or June 1, 2027, whichever comes first.

The Warner Bros Discovery logo. REUTERS

Similar merger challenges have taken an average of eight months for a judge to rule, a Reuters review of recent cases found.