Paramount agreed Friday to delay its planned $81 billion merger with Warner Brothers Discovery until next June or until the merits of a lawsuit against the merger are resolved.

The move comes after a federal judge paused the merger Monday until Aug. 17 to allow the lawsuit from state attorneys general more time to move through the court system. 

Twelve states, led by California, have sued to block the merger, alleging that it would "extinguish competition" in Hollywood and reduce choices for consumers. 

Paramount said it would not close the merger with Warner Brothers until at least five days after the lawsuit is resolved or until June 1, 2027, whichever comes first. The company said the decision was a win because it would clear the way for the lawsuit to go to trial.

“Today’s agreement is a significant win because the result is exactly what we have sought from the outset: a direct path to a trial based on the evidence," a Paramount spokesperson told Deadline. "This is the fastest and clearest way to prove that this transaction is good for competition, good for consumers, and good for creators, a conclusion dozens of competition authorities around the world have already reached. 

"Plaintiffs’ market definitions bear no relationship to the realities of today’s marketplace and cannot withstand scrutiny," the spokesperson continued. "We look forward to proving our case at trial.”

The federal judge will still need to approve the plan to postpone the merger before it's finalized.

Misty Severi is a news reporter for Just The News. You can follow her on X for more coverage.