Paramount Skydance delays $110 billion merger with Warner Bros. Discovery to 2027

Paramount Skydance announced it will postpone its planned merger with Warner Bros. Discovery until June 2027, after a federal judge extended a suspension of the transaction. Judge Araceli Martinez‑Olguín gave the companies two more weeks to assess the case, which is being challenged by a coalition of 12 state attorneys general over antitrust concerns.

The delay triggers a contractual “ticking fee” of $0.25 per share per day payable to Warner Bros. shareholders, amounting to roughly $650 million each quarter and potentially exceeding $1.9 billion if the deal is not completed by the end of September 2026. Paramount said the postponement allows it to confront the litigation in court and maintain that the merger is beneficial for competition, consumers and creators. The deal, valued at about $110 billion, has already received approval from regulators in the European Union and other jurisdictions, but U.S. antitrust scrutiny remains intense.