Judge pauses Paramount-Warner Bros deal through August 17

Paramount Skydance must pause its $110 billion acquisition of Warner Bros. Discovery through August 17, after a federal judge ruled on Thursday.

The decision gives Paramount Skydance additional time to challenge a potential months-long delay as the legal case moves forward. The company has warned that a lengthy pause could create uncertainty around the deal and potentially cost more than $1 billion.

A coalition of states led by California has sued to block the acquisition, arguing that the deal could reduce competition in the film and television industries, affecting movie theaters and cable companies. The Writers Guild of America has also filed a separate lawsuit, claiming the merger could reduce demand for screenwriting jobs.

U.S. District Judge Araceli Martínez-Olguín in Oakland, California, had previously halted the deal through August 3, when she was expected to hold a hearing on whether to extend the pause and delay the closing of the transaction.

Paramount Skydance has requested a three-day hearing in August to present evidence that the acquisition would promote competition before the judge decides whether a longer pause is necessary.

-Reporting by Jody Godoy in New York; Editing by Mark Porter and Deepa Babington/Reuters