Judge sets July 22 ruling on Paramount-WBD deal pause
A federal judge heard 80 minutes of arguments on state AGs’ emergency bid to temporarily stop the Paramount-Warner Bros. Discovery merger.
By Poppy Nakagawa · Culture Writer
2 min read
Paramount and Warner Bros. Discovery will have to wait a few more days to learn whether a federal judge will temporarily hit the brakes on their planned merger.
U.S. District Judge Araceli Martínez-Olguín did not rule from the bench Friday after hearing arguments in Oakland on an emergency motion brought by state attorneys general challenging the transaction, Deadline reported. The judge said she would issue a decision by July 22.
The hearing ran about 80 minutes, according to Deadline, with lawyers for both sides arguing over whether the companies should be blocked from closing the deal while the case moves ahead.
What the states want
The state attorneys general are seeking a temporary restraining order that would prevent Paramount and Warner Bros. Discovery from completing the transaction for as long as 28 days, Deadline reported.
That short-term order would set up the next fight: a request for a preliminary injunction. If granted, that would pause the merger for a longer stretch, either indefinitely or until the court process plays out, according to Deadline.
The states’ case turns in part on how the court defines the relevant markets for theatrical and cable distribution. Deadline reported that much of Friday’s hearing focused on how narrowly those markets should be drawn.
The attorneys general argued that they had shown the transaction is unlawful on its face, according to Deadline. The report did not identify the states involved or detail the companies’ full response beyond the arguments addressed in court.
Paramount says no closing by Wednesday
Jeffrey Kessler, who represents Paramount, told the court the transaction will not close by July 22, Deadline reported. That date falls on Wednesday, the same day Judge Martínez-Olguín said she expects to rule on the emergency request.
The timing matters because the states are asking for immediate relief before any closing takes place. The judge’s pending decision will determine whether the companies face a formal short-term pause while the broader antitrust challenge continues.
For now, the merger remains under legal pressure, with the next move coming from the federal court in Oakland. Judge Martínez-Olguín’s ruling will decide only the emergency motion, not the full merits of the states’ lawsuit.
If she grants the temporary restraining order, the deal would be stopped for up to 28 days while the court considers further action. If she denies it, the states would still be pursuing their challenge, but without that immediate barrier in place, based on the process described by Deadline.
This story draws on original reporting from Deadline.