A US federal judge has scheduled a March 2 2027 date for the antitrust case brought by 12 US states and Writers Guild of America against the proposed $111bn Paramount-Warner Bros Discovery (WBD) merger.
The news comes as a blow to Paramount CEO David Ellison, who had been seeking a swift resolution to the matter and faces approximately $7m in daily payments to WBD shareholders per the “ticking fee” that kicks in should the transaction fail to close by September 30. By March 2 the company will owe approximately $1.1bn.
Attorneys general from 12 states led by California’s Rob Bonta argue the proposed merger is anti-competitive for theatrical and cable distribution sectors and pushed for a trial in April to give them time to prepare. Writers Guild of America argued the merger would be harmful to writers.
Judge Araceli Martinez-Olguin said on Tuesday the trial will run for 12 days. She ordered the parties to submit a joint case management statement by August 13 ahead of a conference on August 19. A pre-trial conference is scheduled for February 24, 2027.
A Paramount spokesperon said, “The court has set a trial date for early March. We respect the court’s decision and continue to 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. The lawsuit against us has no basis in fact, economics or antitrust law. 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 realised.”
Last week California attorney general Rob Bonta, who faces a re-election on November 3, said: “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 programmes that take centre stage in many of our lives,” he said.
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