Gilbert Flores/Variety via Getty Images; Mario Tama/Getty Images
Paramount Skydance has agreed to pause its mega-merger with Warner Bros. Discovery until five days after the antitrust cases are ruled on, or until June 1, 2027, whichever comes sooner, the company said on Friday.Paramount is facing an antitrust lawsuit from 12 US states and a legal challenge from the Writers Guild of America.This decision means Paramount will almost certainly head to court to defend its deal to acquire WBD, unless settlements are reached. That would mean a delay of months."Today's agreement is a significant win because the result is exactly what we have sought from the outset: a direct path to a trial based on the evidence," a Paramount spokesperson said in a statement.The spokesperson continued: "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. Plaintiffs' market definitions bear no relationship to the realities of today's marketplace and cannot withstand scrutiny. We look forward to proving our case at trial."Shares of Paramount and WBD each fell sharply on the news. Paramount's stock finished the day down 3.3% while WBD shares slid about 0.7%.David Ellison's media company had been hoping to close its WBD deal by mid-July.With WBD, Paramount would control two top film studios in Paramount Pictures and Warner Bros. Studios; TV networks like HBO, CBS, and CNN; and streaming services Paramount+, Pluto TV, and HBO Max.This story is developing. Check back for updates.
