Paramount Skydance Agrees to Delay $111 Billion Warner Bros. Merger Until June 2027

Paramount Skydance has agreed to postpone its $111 billion merger with Warner Bros. Discovery until five days after an antitrust trial concludes or June 1, 2027, whichever comes first. The agreement with a 12-state coalition led by California effectively shelves the deal for months while states argue it would reduce competition in cable and theatrical markets.

The delay means Paramount will begin incurring a $7 million per day "ticking fee" to Warner Bros. investors starting October 1, a cost the company had hoped to avoid by closing before September 30. The joint stipulation was approved by U.S. District Judge Araceli Martinez-Olguin on Friday afternoon.

States Secure Critical Victory in Court

New York Attorney General Letitia James called the postponement "a critical victory" for consumers. The states had been due to file an injunction motion Thursday night but held off as negotiations produced the delay agreement. A previously scheduled August 3 hearing on the injunction has been canceled.

Key details of the agreement include:

• The merger cannot close until five days after a trial on the merits or June 1, 2027, whichever comes first.
• Paramount had sought a three-day hearing in late August to win judicial approval for an early September close, but states resisted, citing the need for discovery and trial preparation.
• The Writers Guild of America withdrew its own injunction motion after Paramount conceded it would not close before the antitrust claims are resolved.
• The parties must submit a joint stipulation by July 31 on trial scheduling; states previously proposed an April 2027 trial date.
• Dozens of international competition authorities have already cleared the transaction, according to Paramount.

Paramount Calls Delay a Path to Trial

Paramount framed the agreement as a strategic win. "Today's agreement is a significant win because the result is exactly what we have sought from the outset: a direct path to a trial based on the evidence," a company spokesperson said. The statement argued that the states' market definitions "bear no relationship to the realities of today's marketplace."

The delay pushes the merger timeline past the 2026 midterm elections and into 2027, giving the states more time to build their case. The Trump administration had already cleared the deal, but the state coalition sued independently, arguing the merger would harm competition in cable television and theatrical film distribution. With the ticking fee now running, Paramount faces mounting financial pressure to either settle with the states or win at trial. The next milestone is the July 31 scheduling submission, which will set the pace for what promises to be a closely watched antitrust battle.