Paramount Skydance and Warner Bros. Discovery have agreed to delay closing their proposed $110 billion merger until at least June 2027 as they battle a multistate antitrust lawsuit, extending uncertainty over a deal that could reshape the American media landscape.
The agreement allows both sides to avoid a court fight over a preliminary injunction while the case proceeds toward trial. A coalition of 12 Democratic state attorneys general, led by California Attorney General Rob Bonta, sued to block the transaction in January, claiming the merger would "extinguish competition" in the media and entertainment industries.
If approved, the merger would unite major media brands including Paramount Pictures, Warner Bros. Pictures, the Paramount+ and HBO Max streaming platforms, CBS News, and CNN under one corporate umbrella. The deal was first announced in 2024 and has faced regulatory scrutiny since its inception.
What the Left Is Saying
California Attorney General Rob Bonta celebrated the agreement to delay closing as a major victory for the states challenging the merger. "Today's agreement is great news for audiences, movie theaters, and the many people who write, build, and create the art, news, and entertainment so many of us enjoy," Bonta said in a statement posted to social media.
New York Democratic Attorney General Letitia James also praised the decision, calling it "a critical victory in our efforts to uphold the law and protect the film and television industries."
The coalition of attorneys general has argued that allowing two major studios to combine would reduce consumer choice and give the merged entity too much power over pricing and content distribution. Their lawsuit contends the deal would harm competition in multiple markets, including theatrical releases, streaming services, and news broadcasting.
"We are eager to continue to make our case in court and celebrate another tremendous win in our effort to ensure this unlawful merger never sees the light of day," Bonta wrote on social media platform X.
What the Right Is Saying
Paramount defended the merger and said the delay would allow the company to present its case without emergency litigation costs. "This is the fastest and clearest way to prove that this transaction is good for competition, good for consumers, and good for creators, a conclusion dozens of competition authorities around the world have already reached," a Paramount spokesperson told NBC News.
The merger has attracted attention beyond Hollywood because Paramount is now controlled by Skydance founder and CEO David Ellison, 43, whose acquisition of Paramount was backed by his father, Oracle founder Larry Ellison. The elder Ellison is a longtime ally and supporter of President Donald Trump.
Since Skydance took control of Paramount earlier this year, Ellison has overseen changes at CBS News, including bringing in journalist Bari Weiss to oversee the network's news division. President Trump has expressed optimism that new ownership could restore credibility to CBS News after years of criticism from conservatives and Republicans.
Conservative commentators have argued that media consolidation under ownership perceived as sympathetic to conservative viewpoints could benefit consumers by increasing viewpoint diversity. If this merger happens, one company will control both CBS and CNN under ownership that some conservatives believe is moving in a different editorial direction than previous leadership.
What the Numbers Show
The proposed merger is valued at approximately $110 billion, making it one of the largest media consolidation efforts in U.S. history.
Twelve Democratic state attorneys general have joined the coalition suing to block the transaction, with California leading the effort under Attorney General Rob Bonta.
If completed, the merged entity would combine two major film studios (Paramount Pictures and Warner Bros. Pictures), two premium streaming platforms (Paramount+ and HBO Max), and two major news networks (CBS News and CNN).
The deal was first announced in 2024. Skydance took control of Paramount earlier this year after completing a separate acquisition backed by Larry Ellison, whose Oracle Corporation has significant business interests before federal regulators.
The Bottom Line
The delay until June 2027 or final court resolution means the merger faces an extended timeline with continued uncertainty for employees, content creators, and consumers in both companies' ecosystems. A trial date has not yet been set.
The case will test how courts balance claims of consumer benefit from large-scale media consolidation against antitrust concerns about reduced competition. Paramount's argument that international regulators have approved similar combinations elsewhere may factor into litigation strategy.
What happens next: The states will continue preparing their case arguing the merger harms competition, while Paramount and Warner Bros. Discovery prepare to defend the deal as pro-consumer. Both sides will likely use the delay period for discovery and witness preparation rather than settlement negotiations.