Writers Guild asks court to block Paramount-Warner merger pending state AG case

The Writers Guild of America has asked a federal court in Oakland for a preliminary injunction that would temporarily stop Paramount Pictures' planned merger with Warner Bros. Discovery. The guild argues the deal would give the combined companies a 35% share of the market for writing services for anticipated top-grossing films, which it says would eliminate head-to-head competition essential for its members.

In its filing, the WGA contended that the merger meets the legal thresholds for an injunction, citing the risk of irreparable harm because the transaction would be “virtually impossible to unwind” and any later divestiture would be ineffective. The guild also claimed the “balance of equities” favors an injunction, citing public interest in preserving competition and the potential for lost employment, lower pay and reduced creative opportunities for writers.

U.S. District Judge Araceli Martínez-Olguín previously issued a 14-day temporary restraining order at the request of a coalition of state attorneys general and set a hearing for August 3 on their motion for a longer-term injunction. The WGA seeks to synchronize its own hearing with that schedule, stating it will request a separate expedited timetable only if alignment cannot be achieved without disrupting the states’ case. Paramount’s attorneys indicated they could not obtain consent from their client to adopt the proposed schedule.

The merger agreement includes a $7 million-per-day penalty if the deal is not closed after September 30. The judge has given the states until Thursday to file their motion for a preliminary injunction, with Paramount’s response due the following Monday and a reply deadline of July 30.