Judge to rule by July 22 on states’ bid to pause Paramount-Warner Bros. Discovery merger

U.S. District Judge Araceli Martínez-Olguín said at the close of a Friday hearing in an Oakland courtroom that she would issue a written ruling before July 22 on a request by a dozen state attorneys general to temporarily block Paramount's merger with Warner Bros. Discovery.

The states, led by California Attorney General Rob Bonta, seek a temporary restraining order or preliminary injunction, arguing the deal would reduce major studios from five to four and harm competition in blockbuster films, wide-release movies, and cable networks.

Jeffrey Kessler, representing Paramount, asked the judge to forgo a temporary restraining order and pledged that the company would not close the transaction if she ruled on a preliminary injunction by early September. He cited the film "Obsession," produced for $750,000 by Focus Features and grossing nearly $430 million worldwide, as evidence that the industry is changing and that new entrants can achieve major success.

Kessler also noted Amazon's commitment to release 15 films a year theatrically. James Weingarten, attorney for the state attorneys general, called Paramount's proposed timeline "unprecedented and unfair" and said it aimed to avoid payments under a ticking fee that begins October 1.

The Ellisons, Paramount's controlling shareholders, agreed to pay 25 cents per share per quarter, about $7.2 million a day, for each day the deal remains unclosed after that date.

Weingarten argued that a reasonable schedule is needed to hear from competitors and customers. Kessler stated that the lawsuit could have been filed a month or six weeks earlier. The judge's July 22 deadline aligns with the anticipated European Union antitrust clearance, the earliest point at which the merger could close.