Paramount agrees to pause Warner Bros deal while court case plays out
Al Jazeera · LC · trust 63/100
play Live Sign up Show navigation menu Navigation menu News Show more news sections Africa Asia US & Canada Latin America Europe Asia Pacific Middle East Explained Sport Opinion Video More Show more sections Features Economy Human Rights Climate Crisis Investigations Interactives In Pictures Science & Technology Podcasts Travel Sponsored Content play Live Click here to search search Sign up Navigation menu caret-left Donald Trump Trump’s 50 percent Canada tariffs: What to know How Iran war fallout may shape US elections A visual guide to redistricting caret-right Economy | Media Paramount agrees to pause Warner Bros deal while court case plays out The delay, filed in court on Friday, can cost Paramount $1.7bn in fees if the deal is not closed by next June.
x whatsapp-stroke copylink google Add Al Jazeera on Google info There have also been concerns over a media stranglehold should Paramount Skydance's merger with Warner Bros Discovery be allowed to go through in its current form [File: Adam Gray/Reuters] By Al Jazeera Staff Published On 24 Jul 2026 24 Jul 2026 Paramount Skydance has agreed to pause its $110bn acquisition of Warner Bros Discovery until after a federal judge rules on states’ challenge to the deal, according to court papers.
The delay, filed in court on Friday, could cost Paramount Skydance about $7m a day in fees it agreed to pay Warner Bros shareholders if the merger does not close by September 30.
“We look forward to proving our case at trial,” Paramount’s spokesperson said.
Twelve states, led by California, sued on July 13, arguing the deal would “extinguish competition” in Hollywood and lead to fewer choices for consumers, particularly moviegoers and cable customers. Paramount has called the states’ claims meritless and pledged to “vigorously defend” its merger.
“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,” said New York Attorney General Letitia James, who is suing to block the deal.
Friday’s move arrives just days after US District Judge Araceli Martinez-Olguin granted a temporary restraining order requested by the states to freeze the transaction for several weeks.
The companies agreed to pause the deal until five days after the judge rules on the merits of the case, or June 1, 2027, whichever comes first. Paramount could owe as much as $1.7bn in ticking fees to Warner Bros shareholders if the deal is delayed until then.
Similar merger challenges have taken an average of eight months for a judge to rule, a review of recent cases by the Reuters news agency has found.
There have also been concerns over a media stranglehold as the merger would have brought CNN, currently owned by Warner Bros, under the umbrella of Paramount. The latter already owns CBS, which has seen a fair amount of turmoil amid allegations of bias in favour of US President Donald Trump under the leadership of CEO David Ellison, whose father, tech billionaire Larry Ellison, is a Trump ally.
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