Skydance-owned Paramount Global has agreed to postpone the closing of its US$81 billion acquisition of Warner Bros.
Discovery well into next year.
The delay comes as a federal judge weighs a legal challenge from 12 US states seeking to block the transaction.
The coalition of states, spearheaded by California, contends that the combination would effectively eliminate competition in the Hollywood entertainment sector.
The legal pressure has forced the companies to reset their timeline, pushing the finalization of the deal beyond the current calendar year.
This development follows a series of regulatory hurdles for the merger.