Judge to Decide on Paramount-WBD Merger Motion by July 22

U.S. District Judge Araceli Martínez-Olguín heard arguments from both sides in an 80-minute hearing in Oakland on Friday and indicated she will issue a decision on the emergency motion to halt the Paramount–Warner Bros. Discovery merger by July 22. The states, led by California Attorney General Rob Bonta and joined by 11 other states, are seeking a temporary restraining order that would block the deal for up to 28 days, a step that could lead to a broader preliminary injunction.

Paramount’s counsel, Jeffrey Kessler, told the court the transaction is unlikely to close by the July 22 deadline, which coincides with the expected European Union decision on the $110 billion deal. He said Paramount is prepared to agree not to close for 28 days but wants a “mini-trial” to secure a ruling on the preliminary injunction before Sept. 30, noting the merger agreement includes a $7 million-per-day penalty if the deal does not close by that date.

The states argue the merger would substantially lessen competition in theatrical distribution, top-grossing film releases, and basic-cable licensing, potentially leading to higher prices and reduced quality for consumers. They cite combined market shares of about 27 % of box-office revenue and over 30 % of big-budget wide releases, as well as control of more than a quarter of basic-cable revenue.

"It is intuitive and clear that if one company owns 50 of the 100 channels, they will have excessive bargaining leverage, and there will be anti-competitive effects in their negotiations with the cable companies and the satellite distributors," said James Weingarten, representing the state attorneys general.

Kessler countered that the states’ market calculations are misleading, arguing they omit the impact of distributors such as Amazon MGM and unexpected hits like the low-budget film Obsession. He also highlighted the success of F1, distributed by Warner Bros., and argued that streaming growth actually drives increased theatrical production rather than diminishing it. Regarding cable, Kessler said the combined channel packages would be “complementary” with no change in bargaining power.

"It’s no good for a theater owner … to say, ‘But Netflix,’ or ‘But Amazon.’ They can’t stop showing a blockbuster … and say, ‘We’re just going to put Amazon or Netflix up on the screen instead.’ That’s not a substitution for them," Weingarten added, emphasizing the continued importance of anticipated top-grossing movies to the industry.