Paramount Skydance and Warner Bros. Discovery have agreed to delay closing their proposed $110 billion merger until at least June 2027 as they battle a multistate antitrust lawsuit, extending uncertainty over a deal that could reshape the American media landscape. The agreement allows both sides to avoid a court fight over a preliminary injunction while the case proceeds toward trial. A coalition of 12 Democratic state attorneys general, led by California Attorney General Rob Bonta, sued to block the transaction. The lawsuit claims the merger would “extinguish competition” in the media and entertainment industries. If approved, the merger would unite major media brands, including Paramount Pictures, Warner Bros. Pictures, the Paramount+ and HBO Max streaming platforms, CBS News, and CNN under one corporate umbrella. Rather than continue fighting emergency motions, the companies agreed not to close the transaction until June 2027 or until the court reaches a final decision. Bonta celebrated the agreement as a major victory for the states challenging the merger. 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… pic.twitter.com/m4LFxiA5tP — Rob Bonta (@AGRobBonta) July 24, 2026 “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,” Bonta said. “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.” New York Democratic Attorney General Letitia James also praised the decision, calling it “a critical victory in our efforts to uphold the law and protect the film and television industries.” Paramount defended the merger and said the delay would allow the company to make its case in court. “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,” a Paramount spokesperson told NBC News. “We look forward to proving our case at trial.” The merger has attracted attention beyond Hollywood because Paramount is now controlled by Skydance founder and CEO David Ellison, 43, whose acquisition of Paramount was backed by his father, Oracle founder Larry Ellison, a longtime ally and supporter of President Donald Trump. Since Skydance took control of Paramount earlier this year, Ellison has overseen significant changes at CBS News, including bringing in journalist Bari Weiss to overhaul the network’s news division. Ellison has drawn praise from President Donald Trump, who has expressed optimism that new ownership could restore credibility to CBS News after years of criticism from conservatives and Republicans. If this merger happens, one company will control CBS and CNN under ownership that conservatives believe is moving in a different editorial direction.