Paramount and Warner Bros. Discovery have agreed to delay their proposed $111 billion merger until at least June 2027 as a federal court considers a lawsuit brought by a coalition of state attorneys general seeking to block the blockbuster media deal.
The agreement, filed in federal court Friday, extends a temporary 14-day pause that had already been ordered by a federal judge in California while the legal challenge proceeds.
The proposed delay is not yet final and must still receive approval from U.S. District Judge Araceli Martínez-Olguín, who is overseeing the case.
If approved, the agreement would push back any completion of the merger until at least June 2027, giving the court additional time to consider whether the transaction can move forward.
Under the companies’ merger agreement, the deal will automatically expire on June 4, 2027, if it has not been completed by that date.
The proposed merger would bring together two of the entertainment industry’s largest companies in what would rank among the biggest media consolidations in recent years.
The combined company would unite Paramount and Warner Bros. Discovery under a single corporate structure, bringing together major film studios, streaming services and television networks.
Among the assets included in the proposed merger are the streaming platforms HBO Max and Paramount+, along with broadcast and cable networks including CBS and CNN.
The transaction is valued at approximately $111 billion, reflecting the scale of the two companies and the breadth of the media assets that would be combined if the deal ultimately receives approval.
The merger, however, now faces continued uncertainty as the lawsuit filed by a coalition of state attorneys general moves through the federal court system.
Those attorneys general are seeking to prevent the merger from moving forward, prompting the judge to temporarily halt the transaction while the legal issues are reviewed.
Friday’s court filing represents an agreement between Paramount and Warner Bros. Discovery to maintain that pause rather than attempting to close the transaction while the litigation remains unresolved.
Although the companies agreed to the delay, the proposed standstill remains subject to Judge Martínez-Olguín’s approval before it can officially take effect.
The extended timeline also carries significant financial implications for Paramount.
As part of the merger agreement, Paramount agreed to compensate Warner Bros. Discovery shareholders if regulatory or legal delays continue preventing the transaction from closing.
Beginning in October, Paramount will be required to pay Warner Bros. Discovery shareholders $650 million for every quarter the merger remains incomplete.
Those payments could become increasingly costly if the court proceedings or other obstacles continue delaying the deal.
The arrangement highlights the financial stakes surrounding one of the largest proposed mergers in the entertainment industry, where prolonged legal battles can create substantial costs for the companies involved.
For now, both media giants remain in a holding pattern as the federal court considers the lawsuit challenging the transaction.
Judge Martínez-Olguín’s decision on the proposed standstill will determine whether the agreed-upon delay becomes official while the broader legal battle continues.
Unless the merger is completed before June 4, 2027, the agreement between Paramount and Warner Bros. Discovery will expire under its existing terms.
The delay marks another hurdle for a deal that would reshape the media landscape by combining two of Hollywood’s largest studios and bringing together a broad portfolio of television networks and streaming platforms under one company. With the legal challenge still pending, the future of the $111 billion transaction remains in the hands of the federal court as both companies await the next phase of the proceedings.
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