Judge sets March 2027 trial for Paramount-WBD merger

A federal judge on Tuesday scheduled a 12-day antitrust trial beginning March 2, 2027, to hear challenges to Paramount Skydance's proposed $110 billion acquisition of Warner Bros. Discovery ↘ 1.15%, dealing a blow to the merged company's hopes of closing the deal quickly.

U.S. District Judge Araceli Martínez-Olguín, in Oakland, California, issued a preliminary scheduling order that consolidates cases brought separately by a coalition of 12 state attorneys general and the Writers Guild of America into a single trial running through March 19. A final pretrial conference is set for February 24, 2027, and all parties must submit a joint case management statement by noon on August 13.reuters+1

A Compromise Neither Side Wanted

The March date splits the difference between competing proposals. In a July 31 filing, Paramount had pushed for a trial starting in November 2026, while the state attorneys general and the WGA sought an April 2027 start. Paramount has agreed not to close the deal until a judge rules or until June 2027, whichever comes first.krdo+2

"We appreciate the court's attention to this case and look forward continuing to argue our case and blocking this unlawful merger," a spokesperson for the California Attorney General's office told TheWrap.finance.yahoo

The Ticking Fee Clock

The delay carries a steep financial cost. Under the merger agreement, Paramount must pay Warner Bros. Discovery shareholders roughly $7 million per day for every day after September 30 that the deal remains unclosed. A March trial could leave Paramount owing well over $1 billion in so-called ticking fees before a judge ever rules, according to CNN.variety+1

If the deal fails to close due to regulatory matters, Paramount would owe WBD a $7 billion termination fee.finance.yahoo

What's at Stake

The 12-state coalition, led by California Attorney General Rob Bonta, alleges the merger would reduce competition in theatrical film distribution and basic cable channel licensing. The WGA argues it would harm the marketplace for writing work. Paramount has countered that the combination would create a stronger competitor to Netflix ↗ 0.33% and Amazon Amazon.com, Inc. ↘ 2.32%, investing more in content and theatrical releases.bleedingcool+1

The deal has already received clearance from the U.S. Department of Justice and regulators in 24 jurisdictions worldwide. The U.K. Competition and Markets Authority is expected to announce its decision by Friday.finance.yahoo+1