Paramount delays Warner Bros. Discovery deal to 2027

Paramount Skydance has agreed to push back its planned acquisition of Warner Bros. Discovery until as late as June 1, 2027, extending the timetable for a transaction it had earlier expected to close by the end of September. The revised deal comes as the takeover faces an antitrust challenge from state attorneys general.

The company said Friday that the transaction will not close until the court rules on the states’ claims or until the 2027 deadline, whichever arrives first. It described the outcome as a major success because it creates a direct path to trial over the competition arguments raised against the deal.

Court fight over antitrust concerns

The legal dispute began last week when a coalition of state attorneys general led by California’s Rob Bonta sued to stop the merger. A judge then issued a temporary restraining order on Monday, adding an immediate obstacle to the closing process and making the original September target harder to reach.

Paramount has argued that the merger would not harm competition and said the plaintiffs’ market definitions do not reflect how the media business works today. The company said it expects to prove its case at trial, and has pointed to competition authorities in other jurisdictions that already reviewed the deal.

Delays could make the deal more expensive

The amended agreement also changes the economics of the purchase. If the transaction is delayed beyond Sept. 30, Paramount will owe Warner Bros. Discovery shareholders a quarterly ticking fee of 25 cents per share until closing.

That fee could total about $650 million in cash value each quarter, meaning a long delay would steadily increase the cost of the acquisition. If closing does not happen until June 2027, the extra payments could add roughly $1.7 billion to the deal price.

For Warner Bros. Discovery investors, the delay creates both uncertainty and a potential price uplift if the transaction eventually survives the court case. For Paramount, the extension buys time to fight the lawsuit while also raising the financial stakes of any eventual closing.