San Francisco, California – Paramount Skydance agreed on Friday to delay its $110 billion merger with Warner Bros. Discovery while a lawsuit seeking to block the deal moves forward.
If the merger eventually closes, the new combined company would reshape the entertainment and media industry, in addition to delivering a major win to its owners, the Ellison family, who are close allies of President Donald Trump.
Paramount agreed to delay the deal through June 2027, the company said in a court filing on Friday.
Rob Bonta, attorney general of California, which is leading a coalition of 12 states that last week sued to block the deal, welcomed the agreement.
“We are eager to continue to make our case in court and celebrate another tremendous win in our effort to ensure this unlawful merger never sees the light of day,” Bonta said in a statement on Friday.
The other 11 states joining the suit, all Democratic-led, are Arizona, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon, and Washington.
“Halting this merger while our case proceeds is a critical victory in our efforts to uphold the law and protect the film and television industries,” New York Attorney General Leticia James said in a statement on Friday.
