Paramount has formally agreed not to complete its proposed takeover of Warner Bros. while a 12-state antitrust case is heard, potentially delaying the $110 billion deal until June 2027. The pause gives regulators time to challenge the merger’s effect on competition in film, television and entertainment, while Paramount says it will use the trial to argue that the transaction benefits consumers and creators.

The states’ lawsuit, led by California and filed on 13 July, seeks to block what officials describe as an unlawful concentration of corporate power. A judge had initially imposed a two-week pause until August, but the new agreement prevents closing until five days after the case ends or June 2027; from 30 September 2026, Paramount would owe Warner Bros. investors $7 million per day during the delay.