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Judge extends order blocking Paramount-Warner Bros. merger for another 14 days

Judge extends order blocking Paramount-Warner Bros. merger for another 14 days

A federal judge on Thursday extended the order blocking the Paramount-Warner Bros. merger for an additional 14 days, meaning the deal cannot close before Aug. 18. Judge Araceli Martínez-Olguín is scheduled to hold a hearing on August 3 on a request for a preliminary injunction that would block the deal indefinitely. Paramount is requesting additional

A federal judge on Thursday extended the order blocking the Paramount-Warner Bros. merger for an additional 14 days, meaning the deal cannot close before Aug. 18.

Judge Araceli Martínez-Olguín is scheduled to hold a hearing on August 3 on a request for a preliminary injunction that would block the deal indefinitely. Paramount is requesting additional time to present its case against the court order.

A coalition of 12 state attorneys general alleges the deal violates the Clayton Act because it would reduce competition in the basic cable and movie distribution markets. The Writers Guild of America has also filed a separate challenge to the $111 billion merger, saying it will suppress writer compensation and lead to a homogenization of content.

On Monday, the judge issued a 14-day restraining order to suspend the agreement pending the outcome of the court motion. The judge has the power to extend the order for up to 14 additional days, and did so on Thursday.

Paramount is pushing for a three-day evidentiary hearing in late August, saying the company needs the opportunity to cross-examine the states’ witnesses. The company has offered to extend the restraining order to allow that hearing to take place.

The states have urged the judge to rule on the injunction without a multi-day hearing. Last week, State Attorney James Weingarten argued that Paramount was effectively trying to shortcut the trial process by holding an evidentiary hearing without giving the states adequate time to prepare.

In his scheduling order on Thursday, Martínez-Olguín urged the parties to see if they could reach an agreement. Martínez-Olguín also ruled that the WGA’s motion for an injunction would be resolved on the same timeline as the states’ motion.

As of now, the WGA’s motion will be heard on August 3 along with the states’ request for an injunction.

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