Paramount–Warner Bros. Discovery Merger Paused as Judge Extends TRO

U.S. District Judge Araceli Martínez-Olguín extended the temporary restraining order (TRO) on Thursday for an additional 14 days, preventing the merger from closing before Aug. 17. The judge cited “good cause” to allow time to resolve two preliminary-injunction motions and scheduling disputes.

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Paramount Global’s acquisition of Warner Bros. Discovery is valued at roughly $110 billion. A coalition of 12 state attorneys general, led by California AG Rob Bonta, sued on antitrust grounds, alleging violations of the Clayton Act in theatrical distribution, film licensing, and cable network licensing. The Writers Guild of America filed a separate suit over potential impacts on writers’ compensation. The European Union’s antitrust authority has already approved the deal.

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• July 24 – Judge ordered parties to meet on briefing and hearing schedule.

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• July 27 – Paramount’s opposition brief due.

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• July 30 – Replies to the opposition brief due.

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• Aug. 3 – Hearing on the preliminary-injunction motions.

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• Aug. 7 – Deadline for Paramount’s reply brief.

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• Aug. 12 – Deadline for the state AGs’ response brief.

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• Week of Aug. 17 or Aug. 24 – Paramount seeks a three-day evidentiary hearing, pending approval.

The Wrap

• Deal value: $110 billion.

New York Times

• “Ticking fee” after Sept. 30: $6.9 million per day; after Oct. 1, $7 million per day (? $650 million per quarter).

New York Times

• State coalition: 12 attorneys general.

Variety Magazine

• Paramount called the EU Commission’s approval “a major milestone” that “directly refutes key assumptions” of the states’ antitrust complaint.

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• The European Commission said sufficient alternative competitors remain in the European Economic Area to pressure the merged entity.

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The states argue the merger would “substantially throttle competition” in the targeted markets, violating antitrust law.

Hollywood Reporter

The combined company would become the dominant player among the U.S. “big-five” studios, effectively reducing the field to four. The ticking-fee structure creates a $7 million-per-day liability for Paramount if the deal stalls past the September deadline, pressuring a swift closure.

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The court will hear arguments on the preliminary-injunction motions on Aug. 3. Depending on that outcome, a three-day evidentiary hearing may be scheduled for the week of Aug. 17 or Aug. 24. Briefing deadlines—Aug. 7 for Paramount’s reply and Aug. 12 for the state AGs’ response—remain in place. The decision will determine whether the merger can close before the September deadline or face further blockage.

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