Paramount’s Acquisition Of Warner Bros. Discovery Update – Motion Granted Blocking Paramount’s Antitrust Settlement Deal With States Attorney Generals

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 had officially approved Paramount’s acquisition deal this past June but several state attorneys generals filed a joint lawsuit and the Writer’s Guild of America also filed a lawsuit this past July against Paramount trying to prevent the acquisition deal from going through. Paramount recently reached a settlement deal with California and the other States Attorney Generals to resolve the lawsuit. WBD is the current media broadcast partner of AEW.

Deadline reported that U.S. District Judge Araceli Martinez-Olguin issued a ruling earlier today granting a motion from a group called Block The Merger to block Paramount’s antitrust settlement deal with the States Attorney Generals lawsuit.

In his ruling, Martinez-Olguin stated “The Court GRANTS the administrative motions to file amicus briefs. All amicus briefs must be filed on the docket by no later than 12:01 a.m. PST on September 25, 2026. This deadline will not be extended, and tardy submissions will not be considered.”

It was reported that prior to the ruling, a virtual hearing had been scheduled to take place at 11AM PST today that was widely viewed to be the official rubberstamping by the court of Paramount’s settlement deal with the States Attorney Generals.

Paramount is currently facing the now very likelihood of having to pay around $630 million in penalty fees to WBD shareholders on October 1 should they not be able to close out their merger deal with WBD by September 30. Paramount would also be required to pay an additional $630 million to WBD shareholders per quarter that the deal is not completed.