JUST IN: Paramount Agrees to Halt WBD Mega Merger Until June 2027 Amid Lawsuit

(Photo by Ted Soqui/SIPA USA)(Sipa via AP Images)

Paramount agreed to delay its proposed $111 billion merger with Warner Bros. Discovery until at least June 2027 on Friday while a federal judge considers a lawsuit from a coalition of state attorneys general seeking to block the deal.

The agreement, filed in court on Friday, would extend a temporary 14-day pause already imposed by a federal judge in California. The proposed standstill still requires approval from Judge Araceli Martínez-Olguín, who is overseeing the case. The merger agreement is set to expire on June 4, 2027, if the deal is not concluded by then.

The blockbuster deal would combine two of Hollywood’s biggest studios, along with streaming platforms HBO Max and Paramount+ and television networks including CBS and CNN.

The delay could prove expensive for Paramount, which agreed to pay Warner Bros. Discovery shareholders $650 million for every quarter the merger remains incomplete beginning in October.

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