Paramount freezes Warner deal until 2027 as 12 states press suit
What's next: Paramount faces roughly $650 million in added payments every 90 days the merger stays delayed.
Paramount agreed Friday to hold off on closing its proposed acquisition of Warner Bros. Discovery until either the court cases are resolved or June 1, 2027, extending a pause on one of Hollywood’s biggest merger fights. The move came after U.S. District Judge Araceli Martínez-Olguín temporarily blocked the transaction while she weighs a lawsuit from 12 states led by California, along with a separate challenge from the Writers Guild of America. The states argue the deal would reduce competition across film, television, streaming and news. Paramount has defended the merger and said it wants a trial on the evidence. Under the deal terms, the company must pay Warner shareholders about $650 million for every 90 days of delay starting Oct. 1, and $7 billion if the deal misses a June 4, 2027 deadline.