Paramount Skydance's proposed $110 billion acquisition of Warner Bros. Discovery remains on hold until June 1, 2027, after California Attorney General Rob Bonta said settlement talks were suspended over alleged leaks and misrepresentations by Paramount. California and 11 other states sued to block the deal, arguing it would reduce competition in film distribution and cable television, while the Writers Guild of America filed a separate challenge. U.S. District Judge Araceli Martínez-Olguín has set trial for March 2, 2026. Bonta said any settlement would require significant structural remedies, potentially including cable-asset divestitures and separate operation of the Warner Bros. and Paramount Pictures studios. Paramount denies being the source of the leak and argues the merger would strengthen competition with major streaming services. The combined company would carry nearly $80 billion in debt, making asset sales difficult, and could face a ticking fee of roughly $650 million per quarter after Sept. 30. The dispute has increased uncertainty around large media mergers and may encourage partnerships, bundles and minority investments instead of acquisitions.