Twelve state attorneys general filed an antitrust lawsuit on July 13 to halt Paramount's proposed $110 billion merger with Warner Bros. Discovery. The Writers Guild of America followed with its own suit on July 14. A federal court hearing on an emergency motion for a temporary restraining order is set for Friday.
The states, led by California Attorney General Rob Bonta, argue the deal would create excessive concentration in markets for wide-release theatrical films, tentpole movies and basic cable television. They seek a temporary restraining order to pause the transaction.
Paramount lawyer Jeffrey Kessler told CNBC the company still aims to close by the end of September. He said the merger is pro-competitive and needed to strengthen linear television and theatrical production amid challenges from streaming.
A hearing on the states' motion is scheduled for 10 a.m. PT on July 17 before a federal judge. Paramount has offered alternatives for an orderly process starting July 22 or in early September, which the states rejected.
The U.S. Justice Department cleared the deal, but regulators in the UK and European Union have not. Paramount has committed to a $650 million quarterly ticking fee if the transaction remains pending after September 30.
