Overview
- Paramount and a coalition of 12 state attorneys general filed a joint stipulation that U.S. District Judge Araceli Martínez-Olguín approved on Friday, July 24, delaying closing until five days after a merits trial or June 1, 2027, whichever is earlier.
- The agreement cancels a planned Aug. 3 preliminary injunction hearing and moves the dispute from a fast injunction fight to scheduling and preparation for a full trial on Clayton Act antitrust claims.
- The states, led by California, allege the deal would reduce competition in theatrical distribution and basic cable licensing and seek to stop the merger under Section 7 of the Clayton Act.
- Paramount had won a DOJ sign-off in June and won some foreign approvals, but the delay raises major commercial costs for the buyer because the merger agreement triggers roughly $6.9–7 million per day in 'ticking fees after Sept. 30' and includes a multibillion-dollar breakup penalty.
- The pause also affects related litigation: the Writers Guild withdrew its separate injunction motion, both sides must submit proposals on trial timing by July 31, and the outcome will shape how courts weigh state enforcement against federal clearance and the future of big media consolidation.