Paramount Skydance has agreed to pause its $110 billion acquisition of Warner Bros. Discovery until after a federal judge rules on states' challenge to ​the deal, according to court papers filed Friday.

The delay could cost Paramount ​Skydance around $7 million a day in fees ⁠it agreed to pay Warner Bros. Discovery shareholders if the merger does not close by Sept. 30.

California and ​11 other states sued on July 13, arguing the deal would create a media behemoth with the power to raise prices in ⁠film and television. The companies agreed to ⁠pause the deal until five days ⁠after ⁠the judge rules on the merits of the case, or June 1, 2027, whichever comes first.

Similar merger challenges have taken an average ​of eight months for a judge to rule, a Reuters review of ​recent cases found.