Judge weighs states’ bid to slow Paramount-Warner Bros. deal
A federal judge heard arguments on whether to pause the Paramount-Warner Bros. Discovery merger and said a ruling will come by Wednesday.
By Poppy Nakagawa · Culture Writer
2 min read
A judge said Friday that she will rule by Wednesday on a coalition of states’ request to temporarily stop the Paramount-Warner Bros. Discovery merger, according to Variety.
The states are seeking a restraining order that would keep the transaction from moving ahead while their challenge continues. Variety reported that Judge Araceli Martinez-Olguin heard arguments on the request and discussed what harm, if any, a short delay would cause.
At one point in the hearing, Martinez-Olguin suggested Paramount had effectively acknowledged it would not be harmed if a temporary restraining order were granted, Variety reported. Such an order could freeze the deal for as long as 28 days.
Paramount’s lawyer, Jeffrey Kessler, told the court the company’s main concern is the calendar for a preliminary injunction decision, according to Variety. Kessler said Paramount wants a ruling on that broader request by early September.
Kessler also offered a potential compromise: Paramount would agree that the merger would not close for the next 30 days if the parties agreed to hold a preliminary injunction hearing in late August, Variety reported.
The deadline driving the fight
The timing matters because Paramount faces a major financial trigger later in the year. Beginning Sept. 30, the company will owe investors $7 million per day if the merger has not closed, according to Variety.
That deadline has become a central pressure point as the states push for more time and Paramount tries to keep the transaction on schedule.
Paramount has already said it will not close the deal before July 22, Variety reported. The judge’s expected ruling by Wednesday lines up with that date, giving the court a narrow window to decide whether to impose a formal pause.
The immediate question before Martinez-Olguin is limited to the temporary restraining order. A preliminary injunction fight would go further, potentially deciding whether the merger remains blocked while the states’ case proceeds.
No final ruling on the restraining order was issued Friday. The court’s next move will decide whether the companies can keep pressing toward closing or must wait while the states get another round in court.
This story draws on original reporting from Variety.