Paramount and Warner Bros. Discovery Agree to Extend Merger Freeze Until June 2027

Paramount Pictures announced Friday that it has reached an agreement with Warner Bros. Discovery and a group of state attorneys general to extend the pause on their proposed $111 billion merger until June 2027, the latest date the deal could close. The extension follows a temporary halt ordered earlier this week by a federal judge in California and will take effect only after Judge Araceli Martínez-Olguín, who is overseeing the antitrust case, approves it.

The merger would combine two major film studios, the streaming platforms HBO Max and Paramount+, and broadcast networks such as CBS and CNN. Under the original terms, Paramount would owe Warner Bros. Discovery shareholders a $650 million fee for each quarter the transaction remains incomplete, starting in October.

The lawsuit was brought by a coalition of 12 states, led by California and including New York, Connecticut, Oregon and Arizona. New York Attorney General Letitia James described the freeze as “a crucial victory.”

“From the workers and artists who bring stories to life to the families who buy tickets at the box office, Paramount’s illegal takeover of Warner Bros. is a bad deal for all those who count on a competitive entertainment industry,” James said.

Paramount’s spokesperson called the delay “a significant win,” saying it provides a clear path to a trial to demonstrate that the transaction benefits competition, consumers and creators.

The case remains pending, and the parties await the judge’s decision on the proposed extension.