Paramount Skydance has agreed to delay its acquisition of Warner Bros. Discovery (WBD) until a court ruling is issued regarding a lawsuit from a coalition of U.S. states opposing the deal, or until June 1, 2027, whichever comes first, according to reports from Reuters based on court documents filed on Friday.
This delay could cost Paramount Skydance approximately $7 million per day, as the company is obligated to pay WBD shareholders if the merger is not finalized by September 30.
On July 13, a coalition of 12 state attorneys general, led by California, filed a lawsuit to halt the proposed acquisition, arguing that allowing the merger to proceed would cause irreparable harm to competition. They contended that the formation of a media giant would enable price hikes in the film and television sectors.
On Monday, a federal court in Oakland ordered Paramount to pause the acquisition of WBD until August 3, determining that the states had convincingly demonstrated that the merger could lead to illegal restrictions on competition. The court subsequently extended the moratorium until August 17.
As reported by Reuters on Friday, the companies have agreed to suspend the transaction until five days after the court issues a ruling on the merits of the case or until June 1, 2027, depending on which event occurs first.
Average Timeline of Eight Months for Proceedings
Analysis from Reuters on similar cases indicates that judges typically issue rulings in merger challenges after an average of about eight months.
Paramount Skydance has agreed to acquire WBD shares at a price of $31, valuing the entire transaction at $110 billion. Shareholders of WBD approved the merger in April. The deal encompasses two significant film studios, as well as streaming platforms and television channels, including CBS, CNN, and the Polish TVN.
On Wednesday, the European Commission conditionally approved the acquisition, contingent upon Paramount meeting certain commitments related to film distribution.
The proposed acquisition may directly threaten the independence of the station TVN24, warned the organization Reporters Without Borders (RSF). The group has urged the European Commission to condition any approval of the acquisition on guarantees for TVN24.
