A federal judge has set a March 2, 2027 trial date for the antitrust lawsuit seeking to block Paramount’s proposed $111 billion acquisition of Warner Bros. Discovery (WBD), a deal that would create one of the largest entertainment conglomerates in history. The trial, scheduled in the U.S. District Court for the Northern District of California, is expected to last 12 court days, wrapping up by March 19, 2027.
The court also set an April 5, 2027 deadline for both parties to submit proposed findings of fact and conclusions of law, complete with citations to legal authority and the factual record. The scheduling order comes after Judge Araceli Martínez-Olguín temporarily blocked the merger earlier this week, delaying a transaction that was originally expected to close in the third quarter of this year.
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California AG leads multi-state challenge
California Attorney General Rob Bonta is leading a coalition of 12 state attorneys general who filed the lawsuit challenging the merger. The complaint alleges the megadeal would violate Section 7 of the Clayton Act, which prohibits mergers that may substantially lessen competition or tend to create a monopoly.
The attorneys general argue the combination of Paramount and Warner Bros. Discovery would “lead to higher prices, lower quality, and less content for film and television, harming movie theaters, basic cable distributors, and ultimately, audiences on every sofa and movie theater seat in the U.S.”
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Last month, Paramount agreed to delay the merger until 2027 to allow the legal challenge to proceed. The deal is now expected to close no earlier than June 2027, assuming the court rules in favor of the companies.
A historic Hollywood combination
The proposed merger would unite two major Hollywood studios under one corporate umbrella, bringing together their television networks, including CBS and CNN. Paramount CEO David Ellison, who took control of Paramount last year through an $8 billion merger with Skydance Media, is leading the acquisition of Warner Bros. Discovery.
Critics of the deal argue it would crush competition in the entertainment industry and lead to mass layoffs. Some have also raised concerns about the influence of Ellison’s father, Larry Ellison, the billionaire co-founder of Oracle, who is heavily financing the deal and is a close ally of President Donald Trump.
Liberal critics have specifically speculated that CNN’s coverage could shift rightward under new ownership, with some suggesting current CBS News editor-in-chief Bari Weiss could take a leadership role. In an op-ed published in The New York Times Tuesday, Ellison sought to address those concerns directly.
“I have regularly voted for candidates of both parties; I hold some views that would be called conservative and others that would be called liberal, just like most Americans; and when it comes to our news operations, I do not aspire to lead these companies to bend their newsrooms to my views. I believe that news should be based on facts and truth,” Ellison wrote.
“Great news organizations like CNN and CBS News are here to tell it straight down the middle,” he added. “That requires newsrooms that reflect the whole world, not one side of it. And it requires independence.”
What to watch as the legal battle unfolds
Both sides argued their case before Judge Martínez-Olguín last week, with the judge issuing a temporary delay of the merger on Monday. The trial itself will examine whether the combination would substantially lessen competition in the entertainment market, a question that could have far-reaching implications for the industry.
If the merger is ultimately blocked, Paramount and Warner Bros. Discovery would remain separate companies, and both would face the challenges of an increasingly competitive streaming field. If it proceeds, the combined entity would control a vast library of film and television content, along with major broadcast and cable networks.
The case is being closely watched by media industry analysts, antitrust lawyers, and investors, as it could set a precedent for how consolidation in the entertainment sector is treated under U.S. antitrust law. The trial is expected to draw significant attention when it begins in March 2027.
Fox News’ Brian Flood contributed to this report.
Disclaimer: This article is for informational purposes only and does not constitute financial, legal, or investment advice. The outcome of the described legal proceedings is uncertain, and the merger’s future remains subject to court rulings. Markets and legal developments are volatile; readers should conduct their own research or consult a qualified professional before making any decisions.
