Paramount Skydance and Warner Bros. Discovery have delayed their $110 billion merger. The transaction is now postponed until at least June 1, 2027. This pause follows an antitrust lawsuit filed by 12 U.S. states.
California is leading the legal challenge to prevent reduced competition in the entertainment industry. The merger was originally announced in February 2026. Parties initially expected the deal to close by the third quarter of 2026.
Paramount will owe a ticking fee of 25 cents per share to Warner Bros. Discovery shareholders for each quarter the deal is delayed. These payments begin if the merger remains unclosed after September 30, 2026. CEO David Ellison remains confident the transaction will close.
The U.S. Department of Justice approved the deal in June 2026. European regulators have also issued a conditional approval for the merger.