Paramount Skydance has agreed to delay its planned acquisition of Warner Bros. Discovery until as late as June 2027, according to CNBC, extending the timeline for the $110 billion entertainment merger by several months as the companies navigate an antitrust lawsuit from state officials.
The extension came after a group of state attorneys general led by California’s Rob Bonta filed suit last week seeking to block the deal over competition concerns. A judge reviewing the case issued a temporary restraining order Monday, forcing the near-term delay.
Paramount had previously indicated it intended to complete the transaction by the end of September. Despite the setback, the company framed the agreement as favorable, calling it “exactly what we have sought from the outset: a direct path to a trial based on the evidence.”
“This is the fastest and clearest way to prove that this transaction is good for competition, good for consumers, and good for creators, a conclusion dozens of competition authorities around the world have already reached,” Paramount said in a statement Friday.
Growing Price Tag
The delay will prove costly. Under the revised terms, Paramount will owe Warner Bros. Discovery shareholders a “ticking fee” beginning September 30 that amounts to an additional 25 cents per share each quarter until the deal closes. According to CNBC, that fee could total roughly $650 million per quarter.
If the merger takes until June 2027 to complete, the ticking fees would likely add more than $1 billion to the overall deal price. Should the transaction collapse entirely, Paramount would owe a $7 billion breakup fee to WBD.
Shares of Paramount Skydance fell 3% in afternoon trading Friday following the announcement.
Regulatory Split
The proposed combination has received mixed reviews from regulators. In June, the antitrust division of the U.S. Department of Justice cleared the merger. Earlier this week, European antitrust authorities also granted approval.
State officials, however, have taken a different stance. In announcing the lawsuit last week, Bonta argued the deal would harm competition and lead to job losses in the film industry.
“The unlawful merger of these two entertainment behemoths would lead to higher prices, lower quality, and less content for film and television, harming movie theaters, basic cable distributors, and ultimately, audiences on every sofa and movie theater seat in the U.S.,” Bonta said.
Paramount countered that the plaintiffs’ market definitions “bear no relationship to the realities of today’s marketplace and cannot withstand scrutiny.”
Major Hollywood Consolidation
The deal, which was agreed to in February, would unite two major Hollywood studios, two popular streaming services and numerous television networks. Paramount Skydance, led by David Ellison, outbid Netflix to secure the combination with Warner Bros. Discovery.
The merger comes as traditional media companies face mounting pressure from streaming competitors and changing consumer viewing habits. The combined entity would represent one of the largest consolidations in Hollywood history, bringing together extensive film and television libraries along with streaming platforms competing against Netflix, Disney and other rivals.
Source: www.cnbc.com — https://www.cnbc.com/2026/07/24/paramount-wbd-merger-delay.html
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