Paramount Skydance and Warner Bros. Discovery reached an agreement to postpone the completion of their proposed merger, extending the deadline to no later than June 2027. The delay came in response to a legal challenge brought by a coalition of state attorneys general, led by California’s Rob Bonta, who argued the transaction raised antitrust concerns. A judge had issued a temporary restraining order earlier in the week, establishing an immediate pause on the deal’s progression.
Paramount characterized the agreement as favorable to its position, stating it provided a clear path to trial on the merits of the case. The company maintained that international competition authorities had already approved the transaction and that the states’ market analysis did not reflect current industry realities. Paramount expressed confidence in its ability to demonstrate that the combination would benefit competition, consumers, and creators.
The extended timeline carried financial implications for the deal. Under the agreement’s terms, Paramount would owe WBD shareholders a quarterly ticking fee of 25 cents per share, beginning September 30, potentially adding roughly $650 million per quarter. A delay extending to June 2027 could increase the total deal value by approximately $1.7 billion. If the transaction were to terminate entirely, Paramount would be obligated to pay WBD a $7 billion breakup fee.
The $110 billion combination, initially announced in February after Paramount outbid Netflix, would have consolidated two major film studios, streaming platforms, and television networks. While the U.S. Department of Justice’s antitrust division and European regulators had approved the merger, state officials maintained their opposition based on competitive and employment concerns. Bonta emphasized that the states would continue pursuing their litigation, arguing that consolidation would harm consumers and entertainment industry workers.
Paramount Skydance’s stock declined 3 percent during afternoon trading Friday following the announcement.
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