Paramount Skydance (NASDAQ:PSKY) said Friday it has agreed to push back the outside date for its planned purchase of Warner Bros. Discovery (NASDAQ:WBD) to as late as June 2027, as a multistate antitrust fight slows the timetable and increases what it may owe WBD shareholders.

The delay comes days after a coalition of 12 states sued and after U.S. District Judge Araceli Martínez-Olguín issued a temporary restraining order that paused the deal.

• Why did PSKY hit a new low?

In a statement issued on Friday, Paramount framed the revised schedule as a favorable step toward a courtroom showdown, calling it a "significant win." CNBC reported the company said it now has "a direct path to a trial based on the evidence," while arguing the states’ market definitions "bear no relationship to the realities of today’s marketplace."

Will This Merger Redefine Industry Dynamics?

The state case is being led by California Attorney General Rob Bonta, with Arizona, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon and Washington joining. Bonta called the court’s early move a "critical first win in our case to ensure this megamerger never sees the light of day."

In the complaint, the states argue the combined company would control multiple movie studios and TV outlets while also housing the HBO Max and Paramount+ streaming services under one roof.

Bonta also warned, "History tells the tale of what happens when a few people have great power over markets that are central to Americans’ lives: fewer opportunities for more people, worse products and services for all people," linking the challenge to fears of reduced competition.

Paramount has rejected those claims in separate statements, saying it is "confident the evidence will demonstrate that the State AGs’ antitrust arguments are without merit" and that allegations of anticompetitive conduct are "without any basis." The company also said, "This merger is lawful, pro-competitive, and will benefit consumers, creators, workers, and the entertainment industry," adding it expects to "vigorously defend the transaction."

Regulators outside the states have already weighed in, with the U.S. Department of Justice’s antitrust division clearing the deal in June and European competition officials also approving earlier this week, according to CNBC. The states, however, say the tie-up could still mean fewer choices and potential job losses in film and television production.

New Legal Delays Could Cost Paramount Millions

CNBC said the companies previously targeted completion by the end of September, but the new outside date stretches to June 2027. Under the deal terms, Paramount must begin paying a "ticking fee" starting Sept. 30, set at an extra 25 cents per share each quarter until closing, which CNBC said could equal roughly $650 million per quarter.

Other coverage has translated that quarterly figure into a daily burn rate, estimating about $6.9 million per day once the Sept. 30 trigger hits if the deal is still not finished. The longer the court fight drags on, the more that fee becomes a material line item alongside the legal costs of defending the merger.

The merger was announced in February after the David Ellison-led buyer topped a bid from Netflix. The proposed $110 billion combination would unite two major studios, streaming platforms and a wide set of cable networks.

PSKY Stock Price Activity: Paramount Skydance shares closed down 3.30% at $8.21 on Friday and down 0.49% at $8.17 in after-hours trading, according to Benzinga Pro data.

Photo: Shutterstock