Federal Judge Rejects Preliminary Injunction in Consumer Challenge to Paramount-Warner Bros. Discovery Deal
U.S. District Judge Araceli Martínez-Olguín denied a group of consumers' request for a preliminary injunction to block the $110 billion Paramount-Warner Bros. Discovery merger, finding they had not met the legal standard for such relief.
U.S. District Judge Araceli Martínez-Olguín denied a preliminary injunction sought by five pay-TV and streaming subscribers who had sued to block Paramount Global’s proposed merger with Warner Bros. Discovery. The judge said the plaintiffs had not demonstrated a likelihood of success on the merits or shown irreparable harm, standards required for the extraordinary remedy.
The case, filed in April, alleges that the merger could raise subscription prices and reduce the diversity of viewpoints, and also seeks divestiture of Skydance’s recent acquisition of Paramount. Paramount’s counsel argued the consumers lack standing and have not presented a plausible claim of competitive injury. The judge also declined a request for expedited discovery, noting that private plaintiffs do not receive the same access to merger documents as state authorities.
Separately, attorneys general from California and 11 other states have filed an antitrust lawsuit against the merger, and the judge will consider their request for a temporary restraining order at a hearing on Friday.