Judge Extends Temporary Block on Paramount-Warner Bros. Merger

U.S. District Judge Araceli Martinez-Olguin on Thursday extended a 14-day restraining order that prevents the Paramount Pictures and Warner Bros. Discovery merger from closing before Aug. 18. The order, initially issued on Monday, can be prolonged for another two weeks, which the judge exercised.

A hearing on Aug. 3 will address a request for a preliminary injunction that could block the transaction indefinitely. Paramount Pictures has asked for additional time to prepare its case against the injunction and seeks a three-day evidentiary hearing in late August to cross-examine witnesses presented by a coalition of 12 state attorneys general.

The states allege the $111 billion deal violates the Clayton Act by reducing competition in basic cable and theatrical distribution. The Writers Guild of America has also filed a separate challenge, claiming the merger would suppress writers’ wages and homogenize content. Martinez-Olguin’s scheduling order urged the parties to explore a possible agreement and placed the WGA’s motion on the same timetable as the states’ request.

"Paramount was effectively seeking to short-circuit the trial process by holding an evidentiary hearing without giving the states adequate time to prepare," said James Weingarten, the states’ attorney.

The judge has not ruled on the merits of the injunction requests, leaving the future of the merger uncertain pending the upcoming hearings.