Paramount Skydance delays merger with Warner Bros. Discovery

(KYMA, CNN) - Paramount Skydance announced they are delaying their merger with Warner Bros. Discovery (WBD).

According to court documents filed Friday, Paramount and 12 state attorneys general agreed to temporarily halt the merger until June 1, 2027, or until an antitrust trial takes place.

This comes after a judge granted a temporarily restraining order earlier this week after the state attorneys general, including Arizona and California, sued to block the $110 billion merger.

After announcing the delay, a Paramount spokesperson issued the following statement:

"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. 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."

California Attorney General Rob Bonta also responded to the delay, saying in part, "Today's agreement is great news for audiences, movie theaters, and the many people who write, build, and create the art, news, and entertainment so many of us enjoy. We are eager to continue to make our case in court and celebrate another tremendous win in our effort to ensure this unlawful merger never sees the light of day."

Attorney General Bonta spoke with CNN about the delay saying, "This is a significant setback for Paramount, Warner Bros. Obviously, it's a major development in the case in the favor of the states. And this is what we always sought a block of the merger until a judge, the court could decide on the legality of our case."

Bonta also added, "We're going to make a request for when we think trial should be. Paramount, Warner Brothers will make a request when they think trial should be. We are likely to make a request to have trial in 2027, which is very appropriate based on the expert discovery that needs to happen. The fact discovery that needs to happen before a trial can and should go forward."

Arizona Attorney General Kris Mayes, in a post on X, also shared her thoughts on the delay saying, "This merger is unlawful under federal antitrust laws. An extended pause while the court fully reviews the challenge is a major win for Arizona audiences."

In addition the state attorneys general, the Writers Guild of America (WGA) also filed a lawsuit blocking the merger last week.

As a result of the agreement, CNN says the August 3 court hearing on the attorneys general's, as well as the WGA's, request for a preliminary injunction has been canceled.

Prior to the merger's delay, Paramount announced the European Commission approved their merger with WBD Wednesday, as well as the Justice Department approving the merger last month.