Paramount Skydance has agreed to delay its proposed acquisition of Warner Bros. Discovery until a court rules on antitrust claims or until June 1, 2027, whichever comes first, after the European Commission conditionally approved the deal earlier this week.
The agreement follows a temporary restraining order issued by Judge Araceli Martínez-Olguín of the Northern District of California on behalf of a coalition of 12 state attorneys general led by California's Rob Bonta. The court later extended the pause to August 17, and similar merger challenges have taken an average of eight months to resolve. If the transaction does not close by September 30, Paramount will owe Warner Bros. Discovery shareholders a ticking fee of 25 cents per share per quarter, potentially adding roughly $1.7 billion to the deal price if the delay stretches to June 2027.
The Writers Guild of America filed its own antitrust lawsuit this month challenging the combination. Paramount Skydance fell 3% in Friday trading.