A federal judge has postponed a decision on the settlement that would clear Paramount Skydance's $111 billion takeover of Warner Bros. Discovery, asking lawyers for more briefing before she rules.

US District Judge Araceli Martinez-Olguin told an Oakland courtroom on Thursday she would issue her ruling "in due course." Twelve states, led by California, challenged the merger in July, arguing it would weaken competition, raise prices and shrink theatrical film releases.

Under the proposed settlement, Paramount would release 30 films in theaters each year for two years, then 32 a year for three more. It would also invest $1.5 billion in US film production over five years and create a $47.5 million fund for workers hit by the merger. The company must negotiate its cable channels separately from Warner Bros.' channels and set up an editorial independence board for CNN and CBS news.

The Writers Guild of America reached its own settlement with Paramount, ending its separate lawsuit. California's attorney general stressed the deal does not mean he supports the merger. If the judge rejects the settlement, a trial set for March 2027 would decide the case's fate.