Paramount subscribers seek Supreme Court order to halt Warner Bros. Discovery merger

Paramount subscribers filed a petition on Monday urging Justice Elena Kagan to issue an order that would block the $110 billion acquisition of Warner Bros. Discovery by Paramount until the Supreme Court considers their antitrust challenge. The merger is scheduled to close on Tuesday.

The plaintiffs argue that a settlement reached between Paramount, several states and the Writers Guild of America does not preserve competition between the two companies. They contend that a district judge wrongly denied a temporary restraining order, claiming the record lacked evidence despite the filing’s references to declarations, exhibits and consumer verifications.

"The district court stated that Applicants again failed to proffer any evidence, that they were left with allegations, and that future TRO or preliminary-injunction motions submitted without evidentiary support would face summary denial," wrote Joseph Alioto, counsel for the subscribers.

The filing asserts that public interest favors freezing the deal and that there is a “fair prospect of reversal” of the lower-court decision. Earlier, a judge had temporarily halted the merger based on concerns that Paramount could attain a 27 percent share of wide-release theatrical distribution, which could substantially lessen competition.

If successful, the Supreme Court would need to issue an immediate order preventing the merger from closing.