Lawyers for Paramount and a dozen state attorneys general sparred Friday over the definition of a blockbuster film during a hearing on an antitrust challenge to the studio's proposed merger with Warner Bros. Discovery.
The hearing took place in an Oakland courtroom before Judge Araceli Martínez-Olguín of the Northern District of California. Jeffrey Kessler, representing Paramount, asked the judge to lift a temporary restraining order and promised not to close the deal early if she ruled on a preliminary injunction by early September. He cited the film Obsession, made for $750,000 and grossed close to $430 million, as evidence that the industry has changed.
James Weingarten, for the AGs led by California Attorney General Rob Bonta, called the proposed timeline unfair and said it aimed to help Paramount avoid a ticking fee starting October 1. He argued that only the five largest studios can consistently produce and distribute blockbusters, and reducing that number would harm competition.
Kessler also pointed to competition from streamers including Amazon, which has committed to 15 theatrical films a year. Weingarten countered that Apple’s F1 film was distributed by Warner Bros. The judge said she would issue a written ruling before July 22, the date when EU antitrust authorities are expected to decide on the deal.
