An update in the ongoing drama around the pending merger of media giants Paramount Skydance and Warner Bros. Discovery: After a group of 12 states led by California sued to block the planned $111 billion merger, claiming it violated antitrust laws, Paramount has agreed to pause the combination of the companies until the conclusion of the upcoming 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,” Paramount said in a statement. “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. We look forward to proving our case at trial.”

READ MORE: 10 Massive Franchises That Will Be Controlled By Paramount After WBD Merger

When the suit was first announced, California Attorney General Rob Bonta said:

The unlawful merger of these two entertainment behemoths would lead to higher prices, lower quality, and less content for film and television, harming movie theaters, basic cable distributors, and ultimately, audiences on every sofa and movie theater seat in the U.S. ... California’s film and entertainment industry touches the lives of Americans daily — it comes into the living rooms of families, has a starring role in many young people’s first dates, and is a point of immense pride and employment for Californians up and down our state.

Prior to the suit, and now Paramount’s announcement that they will pause the WBD merger until the resolution of it, the company had expected to combine the two companies by the end of 2026. There was a very good reason why they wanted to do that quickly; as reported by The New York Times, “[Paramount] has agreed to pay Warner Bros. shareholders $650 million for each quarter the deal doesn’t close, starting in October.”