Judge to rule July 22 on states' request to halt Warner Bros. Discovery-Paramount Skydance merger

Federal District Judge Araceli Martínez-Olguín said she will decide by July 22 whether to grant a temporary restraining order halting the proposed $110 billion merger between Warner Bros. Discovery and Paramount Skydance. The statement came at the close of a July 17 hearing in the U.S. District Court for the Northern District of California in Oakland.

California Attorney General Rob Bonta filed the suit on July 13 on behalf of 12 states. He argued that the combination would raise prices, reduce content quality, and cut the number of movies and television shows.

Bonta added that movie theaters, cable distributors, and viewers would feel the effects, stating that the film and entertainment industry does not exist just to buy and sell companies. James Weingarten, the attorney for the states, described the transaction as the largest merger in Hollywood history.

Box office. Paramount Skydance offered to delay closing the deal voluntarily until at least mid-August. Its attorney, Jeffrey Kessler, told the judge the states had not shown grounds for an immediate restraining order.

The Writers Guild of America West and Writers Guild of America East filed a separate suit to block the merger, according to court records. The case was assigned to Martínez-Olguín on July 15 after Paramount requested removal of the previous judge. Paramount shares fell 4.3 percent to $8.75 on Friday.

Warner Bros. Discovery stock slipped 1.5 percent to $26.87 the same day.