Paramount merger trial set for early 2027

(The Center Square) – A federal trial over the Warner Bros. Discovery and Paramount Skydance merger has been scheduled for March 2, 2027.

 

Democratic state attorneys general led by Rob Bonta of California are suing over the merger.

 

The attorneys general – who required a trial date of April 2027 – claim the $110 billion merger would extinguish competition, cut jobs, and harm consumers.

 

“This is about protecting the vibrancy of an industry, the pockets of consumers, and the quality of films and television programs that take center stage in many of our lives,” said Bonta in a previous statement to The Center Square.

 

The other attorneys general involved in the lawsuit are from Arizona, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon and Washington.

 

Paramount provided a statement saying they welcome the trial to show there are no anti-trust concerns.

 

“We respect the court’s decision and continue to believe a trial on the merits is the best and most direct way for us to prove what we’ve said from the start – this transaction is lawful, pro-competitive, and raises no antitrust concerns,” said Paramount Skydance in an email to The Center Square. “The lawsuit against us has no basis in fact, economics or antitrust law.”

 

Paramount Skydance went on to say that it will continue to “vigorously defend the transaction and remains committed to closing as soon as possible so its benefits for the creative community and consumers can be realized.”

 

The lawsuit is filed in the U.S. District Court for the Northern District of California. That is the same court where a separate but related lawsuit from Writers Guild of America is filed.

 

“With fewer competitors, the merged Paramount-Warner Bros. entity would have both the incentive and the ability to lower costs by suppressing writers’ wages and reducing output,” the WGA complaint states. “Writers will be paid less and have fewer employment opportunities.”

 

The Antitrust Division of the U.S. Department of Justice approved the merger on June 12th. The European Commission signed off on the deal on July 21st.