Paramount pauses Warner acquisition amid US legal challenges
July 27, 2026 12.00 Europe/London By Julian Clover


Paramount has agreed to pause its proposed $111 billion acquisition of Warner Bros. Discovery while two US legal challenges proceed.

In a filing with a federal court in California, Paramount said it would take no steps to complete the transaction until June 1, 2027, or five days after the lawsuits are resolved, whichever comes first.

The agreement follows a temporary restraining order issued last week by US District Judge Araceli Martínez-Olguín. The judge has yet to approve the latest arrangement.

The transaction faces separate lawsuits from a coalition of 12 states and the Writers Guild of America. The challengers argue that combining Paramount and Warner would reduce competition across film, television, streaming and news, while weakening the position of content creators.

The merger would bring together the Paramount and Warner Bros. studios, Paramount+ and HBO, CBS and CNN, alongside a substantial portfolio of cable channels.

The delay could prove costly. From October 1, Paramount is due to pay Warner shareholders around $650 million for every 90 days that completion is delayed. A $7 billion termination fee would apply if the deal has not closed by June 4, 2027.

Paramount said the agreement provided the fastest route to a trial and maintained that the transaction would benefit competition, consumers and creators.

The deal has already secured approval in a number of international markets, including conditional clearance from the European Commission. However, the US proceedings mean completion could now be delayed for several months.