A major merger between Paramount and Warner Bros. Discovery has been delayed. The two companies agreed to postpone the closing of their $81 billion deal until next year.

This decision comes as a judge considers a challenge from 12 states that are seeking to block the merger. The states' challenge claims that the merger could reduce competition. A temporary restraining order was recently granted, freezing the transaction for several weeks.

As a result, a preliminary injunction hearing scheduled for August has been canceled. Further details about the merger and the ongoing legal proceedings are available from the source. The delay is expected to last until either a court ruling is made or June 1, 2027.