Paramount agrees to pause $110bn Warner Bros merger as case plays out

Twelve states led by California had obtained temporary restraining order blocking merger from closing for 28 days Paramount ⁠Skydance ⁠has agreed to ​pause its $110bn acquisition ⁠of ​Warner ‌Bros ‌Discovery until a ‌ruling on several states’ challenge ‌to the deal, or ​until 1 June ⁠2027, according ​to court ​papers ​filed ​on Friday. A group of 12 US states headed by California obtained a temporary restraining order this week that blocked the merger from closing for 28 days, pending the outcome of a motion for a preliminary injunction. The states allege that the deal should be blocked because it will reduce competition in the cable and theatrical markets. A Warner-Paramount merger would bring together two of the five last legacy studios in Hollywood, as well as a host of TV networks, titles filling streaming libraries and news operations. That would include Warner’s HBO Max and CNN coming under the same roof of Paramount-owned CBS, movies including Top Gun and the Paramount+ streaming service. The ⁠delay could cost Paramount Skydance, controlled by the Ellison family, about $7m a ‌day in fees ‌it agreed to pay Warner Bros ‌shareholders if the merger does not close by 30 September