Paramount Skydance has reached an agreement with a coalition of state attorneys general to postpone the Warner Bros. Discovery merger until after an antitrust trial.
The company entered a joint stipulation in the federal case on Friday afternoon agreeing not to close the $111 billion transaction until five days after a trial is held or June 1, 2027, whichever is earlier. No trial date has been set.
A coalition of 12 states, led by California, obtained a temporary restraining order earlier this week that blocks the merger from closing for 28 days, pending the outcome of motion for a preliminary injunction. The states allege that the deal will reduce competition in the cable and theatrical markets, and should be blocked.
Paramount had sought a three-day hearing on the injunction motion in late August, but the states resisted that idea, saying they would need more time to take discovery and prepare for a full trial on the merits.
The states were due to file their injunction motion on Thursday night, but held off as the two sides held discussions on a path forward.
