A California federal judge ruled Tuesday that Paramount’s $81 billion takeover of Warner Bros. Discovery will face an antitrust trial starting March 2, 2027, lasting an expected 12 court days.
The Wall Street Journal reports the timeline set by U.S. District Judge Araceli Martínez-Olguín is later than the November 2026 start Paramount sought and earlier than the April 2027 date requested by California Attorney General Rob Bonta.
The delay could prove costly. Paramount’s agreement includes a “ticking fee” of roughly $650 million per quarter to Warner shareholders beginning this October until the deal closes. If the transaction falls through, Warner would receive a $7 billion breakup fee.
“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,” a Paramount spokeswoman said.
California and 11 other states, including New York and Colorado, along with the Writers Guild of America, sued last month to block the deal, arguing the combination of the two entertainment companies is anticompetitive and would harm consumers and the industry. The merged entity would control two major movie and television studios, the CBS broadcast network, dozens of cable channels including CNN, and streaming services Paramount+ and HBO Max.
California Gov. Gavin Newsom has voiced concerns about the lawsuit, and his office has encouraged Bonta’s office to settle out of court, according to a Wall Street Journal report Friday.
Paramount maintains the deal is pro-competitive and beneficial for consumers, arguing it needs greater scale to compete more effectively against Netflix, Amazon’s Prime Video, and Disney.