Paramount agrees to delay closing Warner buyout for months while judge considers states challenge

NEW YORK (AP) — Paramount on Friday announced its $81 billion Warner Bros. Discovery agreed to delay its acquisition until next year; because the judge continues to evaluate the objections of 12 states that want to block the agreement completely.

In the court filing, Paramount said it would not close the merger until a court decision is made on the merits of the states’ case or by June 1, 2027. The move comes just days after U.S. District Judge Araceli Martínez-Olguín issued a temporary restraining order freezing the transaction for several weeks, ruling that the states raised some “serious questions” and made a strong case for the merger’s potential to “substantially lessen competition.”

Paramount called Friday’s settlement “an important win because the outcome is exactly what we were looking for all along: a direct path to an evidence-based trial.”

The company, which was bought by Skydance last year, added that it was the “fastest and clearest way” to prove the merger was good for competition and the wider industry.

Twelve states, led by California, filed a lawsuit last month to block Paramount from acquiring Warner; He claimed that such a combination would “eliminate competition” in Hollywood and lead to fewer choices for consumers, especially moviegoers and cable customers.

New York Attorney General Letitia James, who is among those suing to block the merger, said Friday: “From the workers and artists who bring stories to life to the families who buy tickets at the box office, Paramount’s illegal takeover of Warner Bros. is a bad deal for everyone who relies on a competitive entertainment industry.”

He called the stop deal a “critical victory.”