Paramount pushes for early trial in Warner Bros merger case
What's the story
Paramount Skydance has requested a judge to set the antitrust trial for its planned merger with Warner Bros. Discovery in November. The request comes as a coalition of US states and the Writers Guild of America have proposed an April 2027 date. The scheduling is crucial for Paramount as it will start paying Warner Bros. shareholders $7 million per day from September 30 until the deal is finalized.
Industry concerns
Paramount argues delay harms industry, consumers
Paramount contended that delaying the trial would harm the creative industry, its workers, and consumers.
A 12-state coalition including California and New York had sued on July 13, claiming that the $111 billion merger would unlawfully lessen competition in basic cable and theatrical distribution markets.
The Writers Guild of America also filed a separate lawsuit the next day, claiming it would hurt writers' market.
Defense strategy
Paramount's defense focuses on benefits to consumers
Paramount has defended the deal, saying it will benefit consumers by creating a stronger competitor to streaming giants like Netflix and Amazon Prime.
In a joint filing on Friday, the states proposed a 12-15 day trial starting April 5, 2027.
However, Paramount wants a 12-day trial beginning November 4, arguing that any delay extends an uncertain environment for creative professionals trying to find the right opportunities in their industry.
Evidence gathering
States seek more time for document collection, depositions
The states are seeking more time to collect documents and take depositions from Paramount executives.
The trial will be held in federal court in Oakland and will rely heavily on expert testimony from economists.
In their filing, the states argued that Paramount's proposed schedule is rushed and unworkable, saying it would allow less than two months of fact discovery and one month of expert discovery.
Deadline pressure
Deadline pressures in potential merger
Paramount has a deadline to close the deal by June 4, 2027.
The WGA contended that such a self-imposed deadline shouldn't dictate the trial schedule.
Earlier this month, Judge Araceli Martinez-Olguin granted a temporary restraining order blocking the deal from closing for 28 days.
However, in an unexpected move last week, Paramount agreed to pause the deal until after trial, effectively conceding that an injunction was likely.
Statement
Paramount accuses states of 'stonewalling tactic'
A Paramount spokesperson said, "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."
They called the states' request a "stonewalling tactic," adding that their request for a November trial date is more than enough time for both sides to conduct discovery, gather evidence, and prepare for trial.