Paramount Skydance has agreed to delay its $110 billion acquisition of AEW media partner Warner Bros. Discovery while an antitrust challenge proceeds.
The transaction will not close until five days after a court ruling on the case or June 1, 2027, whichever comes first. Friday’s agreement follows a temporary restraining order obtained by California and 11 other states earlier in the week.
The states argue that combining two of Hollywood’s remaining major studios would substantially reduce competition and consumer choice in theatrical distribution and television.
Paramount maintains that the transaction would benefit consumers and creators and said it welcomed a direct route to trial.
Both sides will now prepare evidence and conduct discovery ahead of a full trial on whether the merger violates federal antitrust law. No trial date has been set, and a settlement between the parties remains a possibility.
Warner Bros. Discovery is AEW’s principal US media partner. Dynamite airs on TBS, while Collision is carried by TNT, with both shows also streaming on HBO Max under a multi-year agreement.
The proposed takeover would place those WBD properties under the same corporate umbrella as Paramount assets, including CBS and Paramount+.
The delay looks certain to add substantially to the cost of the transaction. Paramount agreed to pay WBD shareholders approximately $7 million per day if the deal remains incomplete after September 30, potentially reaching $1.7 billion if the pause lasts until June.
