LOS ANGELES, July 30 -- The Hollywood merger that was supposed to close months ago now has a new deadline: June 2027, at the earliest.

Paramount Skydance and Warner Bros. Discovery agreed last week to put their $111 billion combination on hold until five days after a federal antitrust trial resolves the case against them, or until the deal's own expiration in June 2027, whichever comes first. Twelve state attorneys general, led by California's Rob Bonta, filed suit to stop the transaction entirely, arguing it would let four companies control 86 percent of wide-release theatrical distribution and consolidate cable television licensing in ways that drive up costs for consumers and reduce options for creators.

The agreement amounts to Para...