Paramount Skydance must pause its $110 billion acquisition of Warner Bros. Discovery through August 17 after a federal judge ruled Thursday, giving the company more time to fight a potential longer delay that it warns could cost more than $1 billion and plunge the deal into uncertainty.
U.S. District Judge Araceli Martínez-Olguín in Oakland, California, extended an earlier temporary hold that had been set to expire August 3.
The ruling comes as Paramount Skydance (PSKY.O) seeks a three-day hearing in August to present evidence that the combination would strengthen competition in film and television rather than harm it. The company has argued that a months-long pause while litigation continues would create significant financial and operational risks.
A California-led coalition of states sued to block the transaction, contending it would reduce competition, damage movie theaters, and hurt cable companies. In a separate case, the Writers Guild of America alleges the deal would lower demand for screenwriting work. The judge’s latest order keeps the acquisition on hold pending further proceedings on whether a more extended injunction is warranted.