The proposed $110bn (£82.8bn) merger of Hollywood studios Paramount Skydance and Warner Bros Discovery has been put on hold until June 2027 after a legal challenge from 12 US states and the Writers Guild of America (WGA).
Critics argue the tie-up would harm competition, drive up prices for consumers and reduce bargaining power for writers and crews. WGA head Tom Fontana previously warned it would suppress wages and eliminate opportunities for up-and-coming writers.
“Paramount and Warner Bros pause $110bn merger after legal challenge from 12 US states and the WGA.”
The pause comes days after European regulators approved the deal on condition that Paramount ends a major film distribution partnership with Universal Pictures in the region. Emergency court hearings in the US have now been cancelled.
Despite the freeze, the companies insist combining operations is essential to compete with digital streaming giants and tech conglomerates. Paramount hailed the agreement as a “significant win”, saying it provides a “direct path to a trial based on the evidence”. The company added that a trial is the “fastest” way to prove the merger is “good” for competition, consumers and creators.
The US Department of Justice approved the deal in June. But the Block the Merger Coalition, which includes the states and the WGA, pledged to continue fighting. “It remains our view that this merger is unlawful, and we will continue the fight to block it,” the coalition said in a statement on 24 July.
Paramount insists viewers will benefit, vowing to release 30 films in cinemas every year – doubling its current output. Legal teams for both sides must submit a proposed trial schedule by 31 July. Until a judge reaches a final verdict – or until 1 June 2027 – the two studios will remain completely separate, competing operations.