Paramount announced in a Friday court filing that it will delay the closing of its $81 billion acquisition of Warner Bros. Discovery. The company stated it would not finalize the merger until either a court rules on the merits of an ongoing legal challenge or June 1, 2027. The decision follows a temporary restraining order issued by U.S. District Judge Araceli Martínez-Olguín, which had already paused the transaction.
Twelve states, led by California, filed a lawsuit last month to block the merger, alleging that the combination of the two media companies would reduce competition in the film and cable industries. New York Attorney General Letitia James stated that the agreement to halt the deal was necessary to protect workers and consumers from what she described as an illegal takeover.
Paramount characterized the delay as a procedural step that allows for a trial based on evidence. The company argued that a full trial is the most efficient way to demonstrate that the merger would benefit the entertainment industry. Paramount, which was acquired by Skydance in 2025, previously indicated it intended to move forward with the Warner Bros. Discovery buyout to expand its market presence.