(LOS ANGELES, USA) – A federal court in California has extended a pause on the $110 billion takeover of Warner Bros. Discovery by Paramount Skydance Corp. until 17 August. The decision keeps one of the largest media mergers in history on hold while legal challenges move forward.
US District Judge Araceli Martinez Olguin issued the ruling. She has also scheduled a hearing for 3 August to examine demands from state attorneys general and the Writers Guild of America. Both groups are seeking to block the deal until a full trial is completed.
Paramount maintains that the merger will survive legal scrutiny. The company has requested a separate three day hearing to present evidence and testimony. It argues that the combination will strengthen competition in Hollywood and allow the merged entity to compete more effectively against streaming giants Netflix and Amazon.
The delay could prove costly for Paramount. Under the terms of the agreement, starting from 1 October the company must pay Warner Bros. shareholders approximately $7 million (about £5.5 million or €6.4 million) every day until the merger closes. The total value of the transaction stands at $110 billion (roughly £86.2 billion or €100.5 billion). If the deal is ultimately blocked on antitrust grounds, either side can walk away from June 2027. In that scenario, Paramount would be required to pay Warner Bros. a further $7 billion (about £5.5 billion or €6.4 billion).
State officials have urged the court to suspend the deal quickly until the case concludes. The trial is scheduled for April next year. The judge has also instructed both parties to try to reach a compromise by 24 July.