Judge Adds Delay to Paramount-Warner Bros Merger

A judge appointed by Biden in California has introduced yet another hurdle to the merger between Paramount and Warner Bros Discovery. This time, the judge has allowed opponents of the merger to submit their objections.

This latest development follows a ruling by District Judge Araceli Martinez-Olguin on Thursday, permitting the filing of amicus briefs before the deal can move forward.

Judge Martinez-Olguin, who took her position in 2023, set a deadline of 12:01 a.m. on September 25 for those opposed to the merger to present their arguments.

As a result of this ruling, the merger is stalled once again.

Opponents, including Free Press co-CEO Jessica J. González, have voiced concerns that the attorneys general involved did not do enough to represent public interests. She criticized the consent decree as weak and unenforceable.

The delay could potentially cost Paramount over $630 million each quarter, a significant concern that prompted Paramount and Warner Bros to challenge the ruling. They argued that outside parties should not be able to impede the merger, stating it would cause severe detriment to Paramount.

Paramount has maintained that their settlement with twelve attorneys general is fair and was achieved after “extensive and difficult negotiations.” Their legal team emphasized that the agreement provides substantial relief in all contested markets, and noted that objections from non-parties do not alter the resolution since it only affects those who agreed to it.

While there was initial hope that the deal could be finalized within two weeks, the studio now faces a hefty penalty of $7 million daily for delays it has incurred.