Paramount-Warner Bros. Discovery merger delayed into 2027 amid antitrust lawsuits

Paramount’s proposed takeover of Warner Bros. Discovery has been pushed back by months and could remain on hold until June 2027 as the companies defend the transaction against antitrust lawsuits filed by 12 states and the Writers Guild of America.

Under an agreement approved Friday, July 24, 2026, by a federal judge in Oakland, California, Paramount Skydance and Warner Bros. Discovery cannot close the merger or begin integrating their operations until five days after a decision on the merits of the lawsuits or June 1, 2027, whichever comes first.

Paramount agrees to delay closing on WBD deal amid state scrutiny

The agreement replaces a temporary restraining order issued earlier in the week by U.S. District Judge Araceli Martínez-Olguín. It also cancels an Aug. 3, 2026, hearing on the states’ request for a preliminary injunction and allows the Writers Guild to withdraw a similar motion. The plaintiffs may renew their preliminary injunction requests later if necessary.

The parties must submit proposed trial schedules by Friday, July 31, 2026. Paramount has indicated that it will push for a trial as early as November, while California Attorney General Rob Bonta has said the states may seek a 2027 proceeding to allow time for expert discovery.

The shift effectively abandons Paramount’s plan to take control of Warner Bros. Discovery during the third quarter of 2026. The companies announced the agreement in February with an expected closing by the end of September, subject to regulatory approvals and other conditions.

The underlying merger contract has an initial termination date of March 4, 2027. That deadline automatically moves to June 4, 2027, if unresolved regulatory conditions or government orders are the only remaining obstacles to closing.

Paramount characterized the court agreement as a favorable procedural development because it moves the litigation directly toward a trial on the underlying antitrust claims rather than requiring the parties to first litigate preliminary injunction motions.

“This is the fastest and clearest way to prove that this transaction is good for competition, good for consumers, and good for creators,” Paramount said in a statement, arguing that the plaintiffs’ market definitions do not reflect the broader entertainment marketplace.

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The states and the Writers Guild framed the pause differently, saying the agreement provides the extended hold they had sought from the court.

Bonta, who is leading the multistate case, said excessive corporate concentration makes products more expensive and reduces quality. He said the states intend to continue seeking a permanent order blocking the merger.

California filed its lawsuit July 13, 2026, alongside Arizona, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon and Washington. The complaint alleges that combining Paramount and Warner Bros. Discovery would reduce competition in theatrical film distribution, large-scale movie releases and the licensing of basic cable networks.

The Writers Guild of America West and Writers Guild of America East filed a separate lawsuit July 14, 2026, alleging the merger would reduce competition for writers’ work and allow the combined company to produce fewer films and television programs.

The delay could become expensive for Paramount. Warner Bros. Discovery shareholders are entitled to additional compensation if the transaction remains incomplete after Sept. 30, 2026. The merger agreement adds about 0.28 cents per share for each day of delay, capped at 25 cents per share during each 90-day period.

That obligation amounts to about $7 million per day and could cost Paramount as much as $1.7 billion if the transaction remains pending through June 1, 2027, according to Reuters. Paramount also faces a $7 billion regulatory termination fee under certain circumstances if the acquisition ultimately fails.

The transaction values Warner Bros. Discovery at $81 billion in equity and about $110 billion when debt is included. It would place Warner Bros. Pictures, CNN, HBO, HBO Max, TNT, TBS, Discovery Channel and other WBD properties under the same corporate parent as CBS, Paramount Pictures, Nickelodeon, MTV, Paramount+ and Pluto TV.

The U.S. Department of Justice declined to challenge the merger in June. The European Commission granted conditional approval July 22, 2026, subject to commitments involving Paramount’s European film distribution partnerships. Regulatory reviews remain underway in some other markets, including the United Kingdom.