Paramount has agreed not to complete its proposed $110 billion merger with Warner Bros. Discovery before 1 June 2027, or before the antitrust case against it is decided on its merits, whichever comes first. Opponents, including California’s attorney general, the Writers Guild of America and campaign groups, welcomed the delay as a significant but incomplete victory, arguing that the merger could reduce competition, harm creative workers and lower film and television output.

The announcement prompted declines in both companies’ shares, with Paramount touching a 52-week low before closing at $8.21 and WBD falling by almost 1% during the day. The delay could prove costly: Paramount faces a $7.2 million daily payment to WBD shareholders if the deal has not closed by 30 September, while abandoning the transaction would trigger a $7 billion break-up fee; Paramount disputes critics’ claims and calls the merger “pro-Hollywood”.