Full Breakdown
Paramount Skydance Delays $111 Billion Warner Bros. Discovery Merger Amid Antitrust Challenge
7/26/2026, 4:38:52 AM
Core Event: Deal Put on Hold Pending Trial
Paramount Skydance Corp. agreed on Friday to postpone the closing of its proposed acquisition of Warner Bros. Discovery until five days after a court’s merits determination or June 1, 2027, whichever occurs first. The delay follows a temporary restraining order issued by U.S. District Judge Araceli Martínez-Olguín after a coalition of twelve state attorneys general sued to block the transaction on antitrust grounds.
Background & Context
The merger, announced in early 2026, would combine two legacy Hollywood studios and their news assets such as CNN and CBS News. Paramount’s bid was backed by billionaire Larry Ellison and financing from Saudi, Abu Dhabi and Qatari sovereign funds, totaling $24 billion in equity. Approvals had been secured from the European Commission, more than 60 jurisdictions, and the U.S. Justice Department, which deemed the deal “likely to boost competition.”
Timeline
- April 16 – David Ellison, CEO of Paramount Skydance, speaks at CinemaCon.
- July 13 – New York Attorney General Letitia James and eleven other states file a lawsuit alleging the merger would “extinguish competition.”
- July 20 – The coalition obtains a temporary restraining order freezing the transaction.
- July 24 – The coalition secures a months-long halt.
- Early August – A scheduled hearing on the preliminary injunction is cancelled after a joint stipulation.
- July 31 (scheduled) – Parties will submit a joint stipulation on trial-scheduling positions.
- June 1, 2027 – Latest possible closing date if the case is not resolved sooner.
Data & Statistics
- Deal value reported as $111 billion, $108.4 billion, and $81 billion across sources.
- “Ticking fees” begin accruing in October at $7 million per day until the purchase is finalized.
- Failure to close would trigger a $7 billion breakup fee to Warner Bros. Discovery.
Official Statements & Responses
The company said it will “vigorously defend” the merger.
California Attorney General Rob Bonta called the lawsuit “a straight-up meat-and-potatoes antitrust case.”
New York Attorney General Letitia James described the halt as “a critical victory” for the industry.
Conflicting Reports & Gaps
Sources differ on the exact purchase price: the Los Angeles Times and Variety cite $111 billion, while PBS, ABC News and CBC reference $81 billion. No source clarifies which figure reflects the final agreed price after financing was finalized.
Verbatim Quotes
What's Next
The parties must file a joint stipulation on trial-scheduling by July 31. A federal trial is expected to commence in 2027, with the merger remaining blocked until a merits determination or the June 1, 2027 deadline, whichever occurs first.
