Paramount Skydance asked a judge on Friday to schedule its upcoming antitrust trial in November, while a coalition of states and the Writers Guild of America asked for a date in April 2027.
The scheduling matters a lot to Paramount, which will begin paying Warner Bros. shareholders $7 million a day on Sept. 30 until the deal is complete. In the filing, Paramount argued that a delay also “prejudices the creative industry, the individuals who work within it, and the consumers who benefit from it.”
Any postponement of the trial, Paramount argued, prolongs an uncertain environment.
“Deciding what projects to commit to, and when, is already difficult for creative professionals trying
to find the right opportunities in a dynamic industry; doing so in an atmosphere of intense business
uncertainty is even harder,” the company’s lawyers argued.
The states, meanwhile, are seeking additional time to obtain documents and take depositions from Paramount executives. The trial is expected to last 2-3 weeks in federal court in Oakland, and will depend heavily on expert testimony from economists.
The 12-state coalition, including California and New York, filed suit on July 13, alleging that the $111 billion merger will unlawfully reduce competition in the basic cable and theatrical distribution markets. Paramount has argued that the deal will help consumers by providing a more robust competitor to streaming giants like Netflix and Amazon Prime.
Judge Araceli Martinez-Olguin granted a temporary restraining order earlier this month that blocked the deal from closing for 28 days. The states were expected to file for a preliminary injunction. But in a surprise move last week, Paramount agreed to put the deal on hold until trial, essentially conceding that an injunction was imminent.
The state case has presented an unexpected obstacle to the deal, which received approval from the Department of Justice in June. The European Commission and regulators in Australia, China, and many other countries have also signed off on the merger.
Leave a Reply