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[BUSINESS] · United States · 100 sources

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Paramount Skydance pauses $110 billion Warner Bros. Discovery merger until June 2027

Paramount Skydance and Warner Bros. Discovery have agreed to postpone their proposed $110 billion merger until at least June 1, 2027, or until a federal court rules on the antitrust challenge. The delay follows a temporary restraining order issued by U.S. District Judge Araceli Martínez‑Olguín, which froze the transaction after twelve state attorneys general and the Writers Guild of America filed lawsuits claiming the deal would substantially lessen competition in film and television distribution. Under the agreement, the companies will not close, consummate, or integrate the merger before the earlier of a court decision on the merits or the June 2027 deadline, and the August 3 preliminary‑injunction hearing has been cancelled. The postponement is expected to cost Paramount roughly $7 million per day in fees and could trigger a “ticking” payment of $0.25 per share per day if the deal is not completed by the September 30 deadline. The European Commission has conditionally approved the merger, requiring Paramount to sell its stake in United International Pictures and refrain from new distribution agreements with Universal in the EEA. The parties described the agreement as a victory and a step toward a trial.

Entities

California Attorney General Rob Bonta · European Commission · Paramount Skydance · U.S. District Judge Araceli Martínez‑Olguín · Warner Bros. Discovery

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