Paramount agrees to suspend Warner Bros. deal as court case begins | Media News

The delay, which was presented to the court on Friday, could cost up to $1.7bn if the deal is not closed by next June.

Paramount Skydance has agreed to suspend its $110bn acquisition of Warner Bros Discovery until a federal judge rules against the deal, according to court documents.

The delay, which was filed in court on Friday, could cost Paramount Skydance about $7m a day in fees it agreed to pay Warner Bros. owners if the merger is not completed by September 30.

“We look forward to proving our case,” said a Paramount spokesperson.

Twelve states, led by California, the defendant on July 13, arguing that the agreement “could eliminate competition” in Hollywood and make there are fewer choices for consumers, especially filmmakers and customers. Paramount has said the claims by the countries are baseless and has pledged to “vigorously defend” its merger.

“Stopping this merger as our case progresses is a critical victory in our efforts to enforce the law and protect the film and television industry,” said New York Attorney General Letitia James, who is charged with blocking the deal.

Friday’s move comes just days after U.S. District Judge Araceli Martinez-Olguin issued the ruling. temporary restraining order he was asked by the states to suspend the project for a few weeks.

The companies agreed to delay 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 up to $1.7bn in payments to the owners of Warner Bros if the deal is delayed until then.

Similar merger challenges have taken about eight months for a judge to decide, a recent analysis of cases by Reuters found.

There have also been concerns about media conflicts as the merger would have brought CNN, which is owned by Warner Bros., under the Paramount umbrella. Those followers already have CBS, which has seen a lot of turmoil among the reasons for favoring US President Donald Trump under the leadership of CEO David Ellison, whose father, billionaire Larry Ellison, is a Trump ally.