Paramount Skydance has agreed to postpone its proposed £111 billion merger with Warner Bros. Discovery until after an antitrust trial. The decision marks a key development in the legal challenge brought by a coalition of state attorneys general.

The company filed a joint stipulation in federal court on Friday. Under the agreement, Paramount will not close the transaction until five days after a trial takes place or June 1, 2027, whichever comes first. The court has not yet set a trial date.

States Push for Full Antitrust Review

A coalition of 12 states led by California secured a temporary restraining order earlier this week. The order blocks the merger for 28 days while the states pursue their case.

The states argue that the deal would reduce competition in the cable television and theatrical markets. They want the court to stop the merger.

Paramount had requested a three-day hearing on the states’ preliminary injunction motion in late August. However, the attorneys general opposed the request. They argued that they needed more time to gather evidence and prepare for trial.

The states had planned to file their injunction motion on Thursday night. Instead, both sides continued discussions and reached an agreement on the next steps.

Paramount Calls Agreement a “Significant Win”

In a statement, Paramount welcomed the agreement and said it provides a clear route to trial.

“Today’s agreement is a significant win because the result is exactly what we have sought from the outset: a direct path to a trial based on the evidence,” a Paramount spokesperson said.

“This is the fastest and clearest way to prove that this transaction is good for competition, good for consumers, and good for creators, a conclusion dozens of competition authorities around the world have already reached. Plaintiffs’ market definitions bear no relationship to the realities of today’s marketplace and cannot withstand scrutiny. We look forward to proving our case at trial.”

August Hearing Cancelled

The agreement cancels a hearing that was scheduled for Aug. 3 in federal court in Oakland. At that hearing, both sides planned to argue over the injunction request.

The Writers Guild of America has also withdrawn its separate injunction motion. The union had scheduled its motion for the same hearing date. Paramount’s commitment to wait for a ruling on the antitrust claims removed the immediate need for that challenge.

Both sides must submit a joint filing by July 31 outlining their positions on trial scheduling. Paramount had hoped to close the merger before Sept. 30. After that date, the company would face a £7 million-a-day fee payable to Warner Bros. investors. The states have previously suggested holding the trial in April 2027.