LOS ANGELES, July 24 (Xinhua) -- Paramount Skydance and Warner Bros. Discovery have agreed to suspend their proposed merger amid two antitrust lawsuits separately filed by state attorneys general and the Writers Guild of America, according to a court stipulation filed Friday.

File photo: AFP

The first suit, led by California Attorney General Rob Bonta and filed by a coalition of 12 state attorneys general on July 13, sought to block the acquisition, arguing that the 110-billion-U.S. dollar transaction would hinder competition in wide-release theatrical film distribution, anticipated top-grossing film distribution and basic cable television-channel licensing.

The Writers Guild of America West and Writers Guild of America East filed a separate lawsuit on July 14 seeking to permanently block the transaction under federal antitrust law.

Under the agreement between the two companies, the transaction cannot close, and no operational integration or consolidation may take place until five days after a merits determination in the cases or until June 1, 2027, the Friday filing stated.

The stipulation also cancels the briefing schedule and the August 3 hearing on the states' motion for a preliminary injunction, adding that the Writers Guild of America has withdrawn its motion, though both the states and the Writers Guild may seek preliminary injunctions later if necessary.

Warner Bros. Discovery said on April 23 that its shareholders have approved the proposed acquisition following a bidding contest involving Netflix and a series of revised proposals.

Paramount said in a press release Wednesday that the European Commission had approved the transaction.