Paramount’s $111 billion merger with Warner Bros. Discovery could face another delay after a federal judge allowed outside groups to challenge the companies’ recently announced antitrust settlement. According to Deadline, U.S. District Judge Araceli Martinez-Olguin granted requests from Block the Merger and the League of United Latin American Citizens to file amicus briefs ahead of a hearing on the September 21 settlement between California and Paramount.
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The briefs must be filed by 12:01 a.m. PT on September 25, with the judge saying late submissions will not be considered. The decision makes it less likely that the settlement and merger will receive formal approval Thursday. The hearing was previously seen as a possible final step toward allowing Paramount and Warner Bros. Discovery to complete the deal.
Block the Merger argues that the settlement does not adequately protect the public interest. Free Press Co-CEO and BTM co-counsel Jessica J. González called the consent decree “weak and unenforceable” and said the organization plans to explain its objections in its filing.
Paramount and Warner Bros. Discovery opposed allowing outside groups to delay the transaction. In a court filing submitted before the ruling, the companies argued that further delays could cost Paramount tens or hundreds of millions of dollars.
Timing remains particularly important because Paramount faces a roughly $7 million-per-day “ticking fee” payable to Warner Bros. Discovery shareholders beginning October 1 if the transaction has not closed. Those payments could total more than $630 million over a full quarter.
The development comes only days after Paramount and twelve state attorneys general reached their settlement. As previously reported, the agreement includes commitments involving theatrical releases, U.S. film production, cable negotiations and oversight of the combined company’s news operations.
The proposed settlement still faces scrutiny. Sen. Cory Booker (D-NJ) sent a letter to Martinez-Olguin asking the court to conduct an independent public-interest review before approving it. California Attorney General Rob Bonta, meanwhile, has defended the agreement following months of litigation over the merger.
Paramount maintains that the proposed consent decree is fair and resulted from extensive negotiations between the companies and twelve state attorneys general. For now, the merger remains unfinished. With new briefs entering the case and the October 1 fee deadline approaching, Paramount could face additional costs if final approval pushes the $111 billion deal beyond the end of September.
