Paramount Halts Warner Bros. Merger Plans, Potentially Delaying Until June 2027

Paramount Skydance’s ambitious merger with Warner Bros. Discovery has hit a significant snag, as Paramount has opted to delay the process. Even if the merger clears legal hurdles, it might not finalize until June 2027.

On July 20, a judge put the $110 billion merger on hold after twelve state attorneys general filed a lawsuit to block the acquisition. Shortly thereafter, Paramount agreed to postpone the merger until the antitrust trial unfolds in court.

According to the joint stipulation from both parties, the merger cannot be completed until five days after the trial concludes. If the trial isn’t held by June 1, 2027, Paramount can proceed with the acquisition of Warner Bros. Discovery.

In a statement, Paramount described this delay as a positive development, stating it provides “a direct path to a trial based on the evidence.” However, if the deal isn’t finalized by September 30, Paramount will incur a “ticking fee” of $7 million per day to Warner Bros. Discovery investors, making the acquisition of the company—which includes WB Pictures, CNN, HBO, DC Comics, and more—significantly more expensive.

New York attorney general Letitia James remarked 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.” Opponents of the merger are concerned about the further consolidation of the U.S. film, television, and media sectors, which would place substantial control in the hands of the conservative Ellison family.

Despite this pause, Paramount Skydance is not completely abandoning the merger. The company still appears committed to merging with Warner Bros. Discovery, even if it misses its original September 2026 closing target. Reports indicate that while the states had previously suggested an April 2027 trial date, updates on the trial schedule will come after another joint stipulation is filed on July 31.