Paramount Skydance has agreed to delay its acquisition of Warner Bros.Discovery until a court rules on a legal challenge by several US states.The merger, valued at $110 billion, will not proceed before June next year while the case is heard.

States argue the deal could create a media giant with excessive influence over film and television markets, potentially leading to higher consumer prices.Paramount remains confident in the deal but faces significant financial risks, including up to $1.7 billion in additional fees if the merger isn't completed by the deadline.The delay also threatens CEO David Ellison's plans to expand into a stronger competitor against streaming giants like Netflix and Disney.Shares in Paramount fell 3.3% on Friday, marking a 37% decline this year.The legal battle adds uncertainty to the company's strategy and could impact its long-term growth prospects.