The proposed merger between Paramount Skydance and Warner Bros. Discovery has been pushed back once again after a coalition of 12 U.S. states, joined by the Writers Guild of America, secured another legal victory.
In mid July, a federal court in California temporarily blocked the deal. It had been expected to move forward in early August after antitrust issues were addressed, but the two companies have now agreed to postpone closing the transaction for almost a year.
According to industry reports, the process is now expected to resume on June 1, 2027, or sooner if Paramount and Warner Bros. Discovery reach a compromise with the states opposing the merger. Paramount is reportedly eager to complete the deal as quickly as possible because, under the terms of the agreement, it will have to pay Warner Bros. shareholders $7 million for every day of delay after September 30.
The announcement also affected the stock market, with Paramount Skydance shares falling to their lowest level in a year.
The merger is valued at $111 billion. Once completed, Paramount Skydance will gain ownership of major franchises including Harry Potter, DC Comics Universe, The Matrix, Mad Max, Scooby Doo, The Lord of the Rings, and Game of Thrones. Warner Bros. Games also includes studios such as NetherRealm, Rocksteady, TT Games, and Avalanche Software, best known for franchises like Mortal Kombat, Injustice, Batman: Arkham, LEGO, and Hogwarts Legacy.
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