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Paramount Skydance deal for Warner Bros. Discovery remains frozen amid trial
The companies are disputing whether the antitrust trial should start in November 2026 or April 2027, with Paramount owing a $650 million quarterly ticking fee and a potential $7 billion breakup fee if the deal fails.
Paramount Skydance Corporation said its roughly $110 billion deal to buy Warner Bros. Discovery remains frozen, because the parties agreed not to close it until five days after an antitrust trial verdict or June 1, 2027, whichever comes first, according to Yahoo Finance. A coalition of 12 states led by California, along with the Writers Guild of America, sued to block the transaction on antitrust grounds, and the judge has already indicated doubts about its legality.
The payment terms add pressure as the case drags on. Paramount owes Warner Bros. Discovery shareholders a $650 million ticking fee every quarter starting September 30 until the deal closes, and if it collapses entirely, Paramount would owe a $7 billion breakup fee, on top of the $2.8 billion it already paid Netflix to win the original bidding process.
Yahoo Finance also reports that the court battle has shifted to timing. Paramount wants the trial to begin in November 2026, while the states and the writers union want April 2027, and both sides are fighting over the trial date itself.
The merger has faced regulators in multiple jurisdictions and related spending and projections are now part of the spotlight. Yahoo Finance notes the deal cleared the Justice Department, the European Union, and China, and that Paramount has said it expects $6 billion in annual cost savings within three years of closing, while its stock is down more than 37% this year as of August 3, 2026 and it has spent over $160 million on legal fees tied to the bid.