Paramount Skydance’s $111 billion takeover of Warner Bros. Discovery has been delayed by an antitrust challenge from 12 Democratic state attorneys general, led by California. The states argue that the deal would reduce competition in cable television and theatrical film distribution, while Paramount says the case is exceptionally weak. The dispute matters because a prolonged delay could prevent the companies from completing one of the media industry’s largest mergers on their planned timetable.

A federal judge has extended a temporary restraining order blocking the transaction until 17 August and scheduled a hearing on the states’ request for a preliminary injunction for 3 August, although Paramount wants it moved later and expanded into a three-day evidentiary hearing. The merger had already received US Justice Department and EU approval, with Paramount agreeing to end its European film-distribution partnership with Universal. If the deal has not closed after 30 September 2026, Paramount must pay Warner Bros. Discovery shareholders 25 cents per share each quarter, estimated at roughly $7 million a day.