Paramount has requested a 12-day antitrust trial starting Nov. 4 with 12 state attorneys general and the Writers Guild of America over its pending $110 billion merger with Warner Bros. Discovery, according to a Friday court filing.
Meanwhile, the state AGs and the WGA are requesting that the trial be held on April 5, 2027, to give them more time for discovery. Under their proposal, the trial would last for at least 12 to 15 days, which they noted permits a decision on the merits by June 2027.
A Paramount spokesperson told TheWrap that the November request is “more than sufficient” to give both sides the time they need to conduct discovery, gather evidence and prepare for a trial.
They argued that delaying the proceedings until April is “nothing more than a stonewalling tactic that goes well beyond the timelines sought in similar prior proceedings and ignores the substantial evidence plaintiffs have already received in this matter.” They added that the delay would harm the “many individuals outside this courtroom who will be denied the expanded content offerings and industry stability that a combined Paramount-WBD promises to bring.”
Meanwhile, the state AGs and WGA argued that a shorter timeline for discovery would be “artificially compressed” and “unworkable, unfair and unjustified.” They noted subjects of discovery will include the definition of the relevant product and geographic markets, the nature and scope of harm in those markets, whether expansion by other firms will prevent harm in those markets, and whether the merger will produce verifiable, merger-specific efficiencies sufficient to outweigh harm in those markets.
“Our challenge to the unlawful Warner Bros./Paramount merger is a clean-cut antitrust challenge through and through: it’s about protecting the vibrancy of an industry, the pockets of consumers, and the quality of films and television programs that take center stage in many of our lives,” California Attorney General Rob Bonta said in a statement. “This challenge deserves careful and thorough review and today my office and attorneys general across the country asked the court for a trial date next spring. We are eager to continue to make our case and look forward to a final determination of the schedule by the court.”
The update comes after the parties agreed to cancel an Aug. 3 preliminary injunction hearing in favor of a trial. Paramount also said it would push the closing of the merger back until five days after the outcome of a trial, or June 1, 2027, whichever comes earliest.
Prior to the decision to move to a trial, the state AGs secured a temporary restraining order, which was extended to block the merger for up to 28 days, pushing the closing back to as early as mid-August.
“We believe a trial on the merits is the best and most direct way for us to prove what we’ve said from the start — this transaction is lawful, pro-competitive, and raises no antitrust concerns,” Paramount’s spokesperson added. “We will continue to vigorously defend the transaction and remain committed to closing as soon as possible so its benefits for the creative community and consumers can be realized.”
In the event the transaction does not close by Sept. 30, WBD shareholders will receive a 25 cent per share “ticking fee” for each quarter until closing, which translates to a payout of roughly $650 million per quarter, or $7 million per day. In the event that the deal does not close at all due to regulatory matters, Paramount will pay WBD a $7 billion termination fee.
The litigation and trial requests come as the deal has been cleared by the U.S. Department of Justice, Warner Bros. shareholders and the European Commission, who implemented conditions including an exit from United International Pictures.
Other countries where the deal has received clearance or where relevant waiting periods have expired include Australia, Austria, Brazil, Canada, China, Kuwait, Saudi Arabia, Serbia, South Africa, Ukraine, Montenegro, New Zealand and North Macedonia. Foreign direct investment authorities in Spain, Germany, Slovenia, Belgium, Czechia, Italy, France and Romania have also signed off.
The U.K. Competition and Markets Authority will decide on whether it will clear the merger, seek remedies or launch a Phase 2 investigation by Aug. 7.
In addition to the state AGs and WGA, a Paramount shareholder and a group of consumers filed separate lawsuits to block the merger, though the latter was denied a preliminary injunction after a judge ruled that they failed to show irreparable harm or that their case would have a likelihood of success.
