The legal battle over the proposed merger between Paramount Global and Warner Bros. Discovery is set to reach an important stage this week. A federal judge is expected to decide whether to temporarily pause the deal. This comes after a coalition of state attorneys general filed a lawsuit to block the transaction. The ruling could have a significant impact on the future of the proposed merger.
Judge to rule on state AGs’ lawsuit against Paramount-Warner Bros. Deal by July 22
The legal fight over the proposed merger between Paramount Global and Warner Bros. Discovery is set to reach another key stage next week. A federal judge has confirmed that she will issue a decision by July 22, 2026, on whether to temporarily block the companies from completing the transaction.
According to Deadline, U.S. District Judge Araceli Martínez-Olguín heard arguments from both sides during an 80-minute hearing in Oakland but declined to rule immediately on the states’ request for emergency relief.
A coalition of 12 state attorneys general is seeking a temporary restraining order that would stop the companies from closing the merger for up to 28 days while the court considers a request for a preliminary injunction.
The hearing also focused on the merger’s timeline. Representing Paramount, attorney Jeffrey Kessler told the court that the transaction would not close before July 22. He informed the judge that Paramount was “prepared to stipulate we won’t close for 28 days.”
However, they asked the court to move quickly on the next phase of the case so a ruling on a preliminary injunction could be issued before September 30. Under the merger agreement, Paramount would reportedly be required to pay a $7 million-per-day fee if the transaction remains incomplete beyond that date.
The lawsuit was filed by California Attorney General Rob Bonta and attorneys general from 11 other states. They argue that the merger would violate antitrust law by reducing competition in wide-release theatrical film distribution, anticipated top-grossing film releases, and the licensing of basic cable channels.
The complaint claims the transaction would result in “higher prices and degraded quality” by giving the combined company greater leverage.
State attorneys also pointed to the companies’ combined market position, arguing that Paramount and Warner Bros. Discovery would control roughly 27% of the domestic box office and more than 30% of anticipated wide-release blockbusters.
In addition, the merged company would own more than one-quarter of all basic cable channels by revenue. Paramount strongly rejected those claims during the hearing.