By Joe Flint

Paramount said Friday it will not move forward with its merger with Warner Bros. Discovery until legal challenges to the deal are resolved or June 1, 2027, whichever comes first.

The $81 billion merger between entertainment giants Paramount and Warner is being challenged on antitrust grounds by twelve states and the Writers Guild of America, who argue the deal is anticompetitive.

Paramount's decision came after a California federal court had granted a temporary restraining order stopping the deal. A hearing on preliminary injunction that would have barred Paramount from closing the merger while the states' antitrust lawsuit proceeds as scheduled for next week.

In a statement, Paramount said "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."

Write to Joe Flint at Joe.Flint@wsj.com

(END) Dow Jones Newswires

July 24, 2026 16:16 ET (20:16 GMT)