In brief
A federal judge in Oakland first froze the merger on 21 July until 3 August and extended the block on 24 July to 17 August, following a suit by 12 state attorneys general filed on 13 July.
Paramount Skydance agreed to buy WBD shares at $31 apiece, valuing the transaction at $110 billion; the deal covers two major film studios, streamers, and channels including CBS, CNN and Poland’s TVN.
On 22 July the European Commission cleared the merger, provided Paramount sells its UIP stake within 13 months and complies with film distribution commitments across the European Economic Area.
Paramount Skydance owes WBD shareholders $7 million for each day the merger is not finalised after 30 September, rising to a potential $7 billion payment if the deal fails on antitrust grounds after 1 June 2027.
- 22 July 2026European Commission grants conditional approval, subject to Paramount’s distribution commitments.
- 24 July 2026Court extends the freeze to 17 August; companies agree to delay closing until five days after a merits ruling or 1 June 2027.
- 3 August 2026Scheduled court hearing may determine whether the freeze stays in place for the full proceedings.
The court order
A federal court in Oakland, California, first blocked the transaction on Monday, imposing a freeze until 3 August after a coalition of 12 state attorneys general, led by California, filed suit on 13 July. Judge Araceli Martinez-Olguin ruled that the states had convincingly demonstrated the merger could lead to an unlawful restriction of competition. On Thursday the court extended the block to 17 August.
What happens next
A hearing is scheduled for 3 August at which the court may decide whether the freeze remains in place for the duration of the proceedings. Paramount Skydance has requested a three-day evidentiary hearing to present its case that the takeover is essential for competition in Hollywood. On Friday the two companies agreed to suspend the deal until five days after a ruling on the merits, or until 1 June 2027, whichever comes first.
“Analiza agencji Reutera dotycząca podobnych spraw wykazała, że w postępowaniach kwestionujących fuzje sędziowie wydawali orzeczenia średnio po około ośmiu miesiącach.”
Financial penalties
Every day of delay beyond 30 September will cost Paramount Skydance roughly $7 million in fees payable to WBD shareholders. If the deal collapses on antitrust grounds, either party can walk away starting 1 June 2027, at which point Paramount would owe WBD an additional $7 billion.
European green light
The European Commission granted conditional approval on 22 July. Paramount committed to selling its stake in the UIP joint venture with Universal Pictures within 13 months of closing. It also undertook not to bundle Warner Bros. film distribution with distributors handling Universal or Disney titles in specific markets, including Poland.
The TVN question
Reporters Without Borders (RSF) warned the proposed takeover could directly threaten the independence of Polish news channel TVN24 and urged the Commission to condition its approval on guarantees for the broadcaster. Poland’s government must separately approve the transfer of control over the TVN Group before the deal can be fully completed in the country.