Judge postpones decision on Paramount-Warner Bros. Discovery merger until late July

A U.S. district judge in Northern California refused to issue an on-the-spot ruling on a temporary restraining order sought by the state to halt Paramount Global's planned $111 billion purchase of Warner Bros. Discovery. The hearing, which was closed to cameras, focused on antitrust arguments from both sides. California Attorney General Rob Bonta, leading a coalition of 12 state attorneys general, contends the merger would reduce competition and raise prices for consumers, while Paramount argues the deal would increase competition in the media market.

The lawsuit alleges the transaction violates Section 7 of the Clayton Act, which prohibits mergers that substantially lessen competition or tend toward monopoly. District Judge Araceli Martínez-Olguín said she will issue a written ruling by July 22.

The Justice Department recently closed its own antitrust review, concluding the acquisition is unlikely to harm competition or consumers and could even strengthen competition across streaming, broadcast and theatrical distribution. However, the department noted that state attorneys general retain independent authority to pursue antitrust actions.

Paramount, led by CEO David Ellison, seeks to move forward quickly to avoid accruing additional delay fees. A company spokesperson said the merger would create a stronger, well-capitalized media company capable of competing with major streaming services and that blocking the deal would contradict antitrust principles that promote competition and consumer choice.