Judge Extends Block on Paramount Skydance Purchase of Warner Bros. to August 17

Overview

• The court extended the temporary order on Thursday, July 24, keeping the merger frozen until at least August 17 and leaving an August 3 hearing on the calendar to consider further suspension.
• Judge Araceli Martínez-Olguín directed the parties to continue efforts to reach an agreement and set a preliminary schedule that could move the dispute to a full trial in April if unresolved.
• Paramount asked for a three-day expedited evidentiary hearing in mid or late August to present witnesses and data that it says show the deal will not harm competition, a request opposed by state attorneys general and the WGA.
• The deal carries steep commercial pressure: Paramount agreed to pay roughly $7 million per day to Warner starting October 1 if closing is delayed and faces up to about $7 billion in breakup exposure under some conditions.
• State prosecutors, led by California, argue the merger would lessen competition in film and TV distribution and the WGA says it would cut demand for writers and squeeze wages, while Paramount says the tie-up is needed to compete with big streaming platforms.