A US judge has delayed final approval of Paramount’s settlement with 12 state attorneys general over its proposed merger with Warner Bros. Discovery, citing outstanding legal and factual questions. The settlement must be approved before the merger can close, meaning the deal is not yet officially complete.

Judge Araceli Martinez-Olguin cancelled a hearing on Paramount’s proposed $1.88 billion bond claim but scheduled a Zoom hearing for 24 September 2026 to examine the consent decree and how it would be implemented. The agreement reportedly includes commitments not to sell studio lots, an additional $300 million a year for US film production and CNN oversight, but no divestitures, despite California Attorney General Rob Bonta previously arguing that structural remedies were necessary. Paramount’s chief executive expects the merger to close in about two weeks if approval is granted.