Paramount Skydance agrees to pause $111 billion Warner Bros. Discovery merger amid lawsuit from 12 state attorneys general

Paramount Global’s Skydance unit and Warner Bros. Discovery have agreed to delay their $111 billion acquisition of Warner Bros. Discovery as litigation proceeds, according to a court filing referenced in a report published Friday by The Hill. The pause comes after 12 state attorneys general sued to block the merger, arguing it would violate U.S. antitrust law.

In the filing, the parties said they reached an agreement to halt the transaction until a judge’s decision in the case, according to the report. The change affects the merger’s timing but does not resolve the underlying challenge to the deal’s legality.

The lawsuit is being brought by 12 state attorneys general, and it seeks to stop the merger before it closes. The attorneys general’s challenge has placed the transaction in a live dispute requiring judicial review rather than regulatory or shareholder approvals moving on a standard timetable.

The companies’ decision to delay indicates they are accommodating the court process rather than pressing forward while the case is pending. If the pause remains in place, the merger’s next steps will be tied to what the court does with any motions and the timing of the judge’s rulings.

The agreement also underscores how state-led antitrust enforcement can shape major corporate combinations even when parties have announced large transactions. During litigation, courts often consider whether to grant preliminary relief that would prevent closing while the merits are decided, and the filing described an accommodation to that posture.

The Hill report says the companies and the attorneys general both agreed to the delay, suggesting the pause is intended to reduce uncertainty while the court considers the parties’ arguments. The merger agreement has therefore been functionally placed on hold pending the outcome of the case.

What happens next depends on the judge’s schedule and rulings in the lawsuit, including any decisions that determine whether the transaction can proceed. Until the court’s action, the deal remains contested, with closing dates and related approvals effectively deferred by the agreed pause.