Paramount Skydance has agreed to delay the completion of its proposed acquisition of Warner Bros. Discovery while a federal court considers an antitrust challenge to the deal.

Colorado Attorney General Phil Weiser said an agreement submitted to the federal court prevents the companies from closing the transaction until five days after the lawsuit is resolved or June 1, 2027, whichever comes first.

Paramount Skydance plans to acquire Warner Bros. Discovery in a transaction valued at approximately $110 billion. The deal is being challenged by a coalition of 12 states, led by California and including Colorado.

The states argue that combining the two major media companies could reduce competition across the film, television and streaming industries, limit consumer choice, and negatively affect content creators and industry workers.

Paramount Skydance said the agreement would allow the case to proceed quickly and give the company an opportunity to demonstrate that the transaction would benefit competition, consumers and content creators. The agreement delays the closing of the deal but does not cancel the proposed acquisition.