Paramount’s Acquisition Of Warner Bros. Discovery Update – Judge Issues Temporary Restraining Order on Merger Deal

As noted before, Warner Bros Discovery announced this past April that their shareholders had voted in approval of Paramount Skydance’s acquisition deal for the company. The United States Department of Justice officially approved Paramount’s acquisition deal for WBD this past June. Several state attorneys filed a joint lawsuit last Monday and the Writer’s Guild of America also filed a lawsuit this past Tuesday against Paramount to try to prevent the acquisition deal. WBD is the current media broadcast partner of AEW.

Post Wrestling’s Jack Wannan reported that U.S. District Judge Araceli Martinez-Olguin of the North District of California ruled on Monday granting the state attorneys request for a temporary restraining order against Paramount’s merger deal.

In the ruling, Judge Martinez-Olguin placed a two-week restraining order on the merger deal.

Wannan reported that this will now give Judge Martinez-Olguin the opportunity to go over a complaint from California Attorney General Rob Bonta, who alleges that the transaction violates antitrust laws and would “extinguish competition” in the entertainment industry.

A court hearing was scheduled to be taking place on August 3 to determine whether Paramount’s deal should be further delayed until the lawsuit is completed.

In regards to Paramount, this delay could end up becoming costly due to they had agreed to pay a “ticking fee” to WBD shareholders if the deal is not finalized by September 30. This agreement would require Paramount to pay an extra 25 cents per WBD for each fiscal quarter the deal gets delayed, which would be roughly around $650 million in extra fees.