Paramount-WBD merger trial scheduled for March 2027
What's the story
A US District Judge has scheduled the trial for the merger between Paramount and Warner Bros. Discovery (WBD) from March 2 to March 19, 2027. The date is much closer to the timeline proposed by state attorneys general and the Writers Guild of America (WGA), both of whom have sued to block the transaction. Notably, Paramount had pushed for a November start while state AGs and WGA suggested April as a possible date.
Schedule details
Trial will run from 8:30am to 1:30pm
Judge Araceli Martinez-Olguin, based in Oakland, has outlined the trial schedule. It will run from 8:30am to 1:30pm with two breaks of 15 minutes each.
The trial will not be held on March 8 and March 15.
A spokesperson for Paramount said they respect the court's decision and believe that a trial is the best way to prove that this transaction is lawful, pro-competitive, and raises no antitrust concerns.
Financial implications
Merger has June 4, 2027 expiration date
The merger has an expiration date of June 4, 2027. If the transaction doesn't close due to regulatory issues, Paramount has agreed to a $7 billion termination fee.
The company will also have to pay WBD $7 million for every day the transaction remains incomplete after September 30.
This was part of Paramount's strategy as it competed with Netflix for the legacy studio and other assets.
Regulatory challenges
Paramount concerned about redoing regulatory work
Paramount has expressed concerns that a spring trial would force them to refile merger materials with the Justice Department, which has already cleared the transaction.
The company's legal team said in a filing last week that "a trial after that date would require the parties to re-do regulatory work that has already been completed.
"This burden is not limited to US but will also be applicable in other jurisdictions where pre-closing regulatory review and clearance has been obtained," it added.
Discovery requirements
Why state AGs and WGA insist on extensive discovery
On the other hand, state AGs and the WGA have insisted they need extensive discovery.
They have pointed to the collection of materials on "the definition of the relevant product and geographic markets, the nature and scope of harm in those markets," among other things.
Paramount has said that a later date would leave the creative community uncertain as the company plans to ramp up production to 30 films per year.