Paramount Skydance just paused its Warner Bros. Discovery merger, possibly until June 2027

Paramount Skydance’s attempted merger with Warner Bros. Discovery has encountered another major roadblock, as Paramount has agreed to postpone it. Even if the mega-merger isn’t stopped in court, it may not close until June 2027.

On July 20, the $110 billion merger was paused by a judge after twelve state attorneys general filed a lawsuit to stop the acquisition from going through. A few days later, Paramount decided to enter into an agreement with those attorneys general to postpone finalizing the merger until after their antitrust trial plays out in court.

According to the joint stipulation agreed to by both parties, the merger can’t be completed until five days after a trial is held. If a trial is not held by June 1, 2027, then Paramount can resume the process of acquiring Warner Bros. Discovery.

In a statement provided to Variety, Paramount framed this pause as a positive thing, “because the result is exactly what we have sought from the outset: a direct path to a trial based on the evidence.” If Paramount does not close this deal before Sept. 30, though, it’ll have to start paying Warner Bros. Discovery investors a “ticking fee” that adds up to $7 million per day. That’ll obviously make acquiring the company that owns WB Pictures and Games, CNN, HBO, DC Comics, and more significantly costlier.

Meanwhile, New York attorney general Letitia James stated in a press release that “halting this merger while our case proceeds is a critical victory in our efforts to uphold the law and protect the film and television industries.” Those against the proposed merger hate how it further consolidates the United States’ film, television, and other media industries, putting so much of it under the control of the conservative Ellison family.

This pause does not mean that Paramount Skydance is completely backing out of the merger. The company still seems intent on merging with Warner Bros. Discovery for now, even if it will miss the Sept. 2026 closing window that it originally set for itself. Variety reports that while the states previously proposed holding the trial in April 2027, we won’t get an update on trial scheduling until another joint stipulation is filed on July 31.