The proposed $110 billion merger between Paramount and Skydance has been temporarily halted following legal challenges from twelve state attorneys general. A judge placed a pause on the deal after the states filed a lawsuit aiming to block the acquisition.
Paramount has since entered into an agreement with these attorneys general to postpone the finalization of the merger until after an antitrust trial has taken place. According to the joint stipulation entered by both parties, the merger cannot be completed until five days after the trial concludes. If a trial is not held by June 1, 2027, Paramount will be permitted to resume the process of acquiring Warner Bros. Discovery.
Paramount views this pause as a positive development, stating that it provides a "direct path to a trial based on the evidence." However, the company faces financial implications if the deal is not closed by September 30. After this date, Paramount would be required to pay Warner Bros. Discovery investors a "ticking fee" amounting to $7 million per day, significantly increasing the cost of acquiring the conglomerate that owns Warner Bros. Pictures Group, CNN, HBO, and DC Comics.
New York Attorney General Letitia James characterized the halt as a "critical victory in our efforts to uphold the law and protect the film and television industries." Opponents of the merger have voiced concerns about the further consolidation of media industries in the United States under the control of the conservative Ellison family.
This postponement does not signify Paramount Skydance's withdrawal from the merger. The company still appears committed to the acquisition, despite the likelihood of missing its original September 2026 closing target. While states had previously proposed an April 2027 trial date, an update on scheduling is not expected until another joint stipulation is filed on July 31.