Paramount delays USD 81 billion Warner buyout as 12 states press antitrust case

Newyork,UPDATED: Jul 25, 2026 02:28 IST

Paramount has agreed to delay closing its USD 81 billion buyout of Warner Bros Discovery until well into next year, as a US judge continues to consider a legal challenge by 12 states seeking to stop the deal altogether.

In a court filing on Friday, the company said it would not complete the merger until either there is a court ruling on the states' lawsuit or June 1, 2027. The filing came days after US District Judge Araceli Martinez-Olguin granted a temporary restraining order pausing the transaction for several weeks.

The judge said the states had raised some "serious questions" and had made a strong case that the merger could "substantially lessen competition". Paramount described Friday's agreement as a "significant win because the result is exactly what we have sought from the outset: a direct path to a trial based on the evidence."

The company, which was bought by Skydance last year, also said this was the "fastest and clearest way" to show that the merger was good for competition and the wider industry.

The lawsuit was filed last month by 12 states led by California. They argued that Paramount's planned buyout of Warner would "extinguish competition" in Hollywood and reduce choices for consumers, especially moviegoers and cable customers. New York Attorney General Letitia James, one of the officials backing the case, said on Friday: "From the workers and artists who bring stories to life to the families who buy tickets at the box office, Paramount's illegal takeover of Warner Bros. is a bad deal for all those who count on a competitive entertainment industry." She described the agreement to pause the deal as a "critical victory".

For now, the merger will remain on hold while the court considers the challenge, with Paramount saying it will wait for a ruling on the case or until June 1, 2027 before closing the transaction.

With PTI Inputs

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