Paramount Skydance has agreed to postpone its proposed $111 billion acquisition of Warner Bros. Discovery while a lawsuit by 12 US states proceeds towards a full trial. The agreement prevents the companies from completing the deal or integrating their businesses until a judge decides the case, making it a significant temporary victory for opponents who argue the merger would harm competition in film and television.

The pause will last until five days after a ruling on the merits or 1 June 2027, whichever comes first; if no ruling is made by then, the plaintiffs may seek a preliminary injunction. Led by California, the states secured a temporary restraining order after a federal judge found the merger was likely to substantially reduce competition, including by combining two of Hollywood’s five major studios and two major basic-cable owners. Paramount said it welcomed a direct trial route and maintained that the transaction would benefit consumers, creators and competition.