Judge Delays Ruling on Paramount, WBD Mega Merger

Paramount Skydance and 12 state attorneys general on Monday defended their antitrust settlement over the Warner Bros. Discovery takeover, telling a federal judge the deal is a hard-fought, arm’s-length compromise not a rubber stamp that Sen. Cory Booker can reopen. 

In a court filing due by noon Pacific time, the parties said the consent decree “reflects a reasonable compromise that addresses the competitive issues posed by the proposed merger in the markets alleged in the Complaint.” The response answers Booker’s letter and questions from U.S. District Judge Araceli Martínez-Olguín, who last Thursday declined to approve the settlement on the spot. 

Booker, the top Democrat on the Senate Judiciary antitrust subcommittee, urged an independent public-interest review. He argued the decree reached the court without a competitive impact statement, a public-comment period, or a formal chance for theaters, distributors, workers or consumers to be heard.

The Justice Department had already cleared the roughly $110 billion merger without remedies, he noted, leaving the state settlement as the main enforceable check. 

Judge Martinez-Olguin

Judge Martínez-Olguín, sitting in Oakland, used a Thursday Zoom hearing that drew hundreds of viewers to probe whether the pact was collusive. She ordered replies to Booker, a clean copy of the decree with any redlines, and notice of which state officials will monitor compliance. She said a ruling would come “in due course.”  The Sept. 21 settlement ended a California-led suit by attorneys general from Arizona, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon and Washington. It does not kill the merger. 

For five years after closing, Paramount must release at least 30 films a year (20 wide releases) in years one and two and 32 films (21 wide) in years three through five; spend at least $300 million a year more on U.S. production than in 2025, or $1.5 billion total; keep the Paramount and Warner lots in California; contribute $47.5 million for displaced workers; accept theater-pricing and cable-negotiation limits; keep a free ad-supported streamer; and accept an independent monitor plus a journalists’ board meant to protect editorial independence at CBS News and CNN. 

Breach can trigger penalties, including asset divestiture. California AG Rob Bonta has called the package a strong antitrust outcome while saying he still does not think the companies should merge. Connecticut AG William Tong said he wanted CNN and CBS News spun off and was “deeply disappointed” that did not happen.