Paramount Skydance has agreed to delay its $111 billion merger with Warner Bros.Discovery until June 2027, following a postponement due to antitrust litigation.

The decision, reached with a 12-state coalition led by California, effectively halts the deal for months while states argue the merger would reduce competition in cable and theatrical markets.The agreement, which replaces a previous plan to close the deal by September 30, 2026, acknowledges the need for a legal resolution.Paramount had faced a $7-million-per-day fee for delaying the merger, but the postponement avoids that cost.The states had resisted Paramount's request to fast-track the deal, insisting on more time for discovery and trial preparation.A scheduled hearing on August 3 was canceled, and the parties agreed to submit a joint stipulation by July 31.

The Writers Guild of America's injunction motion was also withdrawn, signaling Paramount's concession that the merger will not proceed without a resolution.

The case highlights ongoing regulatory scrutiny of media consolidation, with global competition authorities already endorsing the merger's pro-competitive benefits.The trial, initially proposed for April 2027, now faces further delays as both sides seek a resolution.