Paramount Skydance delays $111 billion Warner Bros. Discovery acquisition to 2027
The extended timeline costs the company approximately $7 million a day but provides a venue to prove the transaction benefits competition, following regulatory approvals in the US and Europe.
Paramount Skydance has agreed to postpone its $111 billion acquisition of Warner Bros. Discovery until June 2027. The decision allows a federal judge to consider a joint lawsuit filed by 12 US states and the Writers Guild of America, which seeks to block the merger on antitrust grounds. The new agreement extends a two-week pause previously granted by Judge Araceli Martínez-Olguín on July 20, though it requires final judicial approval to become official.
Under the terms of the delay, Paramount will not take any steps to integrate or consolidate operations until June 1, 2027, or five days after a court rules on whether the acquisition violates antitrust law. A hearing previously scheduled for August 3 has been cancelled, and the plaintiffs have withdrawn their requests for injunctions. All three parties must propose new trial schedules for their separate cases by July 31.
The delay imposes significant financial costs on Paramount Skydance, estimated at $0.25 per share per quarter or approximately $7 million per day. Despite the expense, the company maintains that proceeding to trial is the most effective method to demonstrate the transaction's benefits. Paramount stated that a trial is the fastest and clearest way to prove the deal is good for competition, consumers, and creators.
Regulatory hurdles in the US and Europe have largely been cleared, with the US Department of Justice approving the deal in June and the European Commission granting conditional approval earlier this week. The European approval was contingent on Paramount exiting a distribution deal with Universal. Opposition from the 12 US states and the Writers Guild of America, who filed separate lawsuits on July 14, remains the primary obstacle to closing the transaction.
Paramount Skydance originally agreed to purchase Warner Bros. Discovery in February, beating out Netflix for the historic studio at a valuation of approximately $111 billion, or $31 per share. The extended pause follows the initial regulatory approvals and marks a shift from a smooth closing to a protracted legal battle that could extend well beyond the end of September.
