Paramount Skydance has agreed to put its massive $110 billion acquisition of Warner Bros. Discovery on hold while a federal judge weighs a legal challenge to the proposed deal, according to court documents submitted Friday.
The voluntary pause carries a steep price tag. If the merger fails to close by September 30, Paramount Skydance could be on the hook for approximately $7 million per day in fees it had previously committed to paying Warner Bros. shareholders.
The legal challenge was filed on July 13 by California and 11 other states, which argue the combined company would form an enormous media powerhouse capable of driving up prices for consumers in both film and television.
Under the agreement, the deal will remain paused until either five days after the federal judge issues a ruling on the merits of the case, or June 1, 2027 — whichever milestone arrives first.
A Reuters review of recent similar merger challenges found that judges have taken an average of eight months to reach a decision in comparable cases.
