Paramount seeks hearing as Warner Bros. Discovery merger faces challenge

Paramount asked a federal judge to hold a three-day evidentiary hearing as she considers whether to block the company's proposed acquisition of Warner Bros. Discovery while an antitrust lawsuit moves through the courts. The company argued that a more detailed hearing is necessary before any decision is made on a preliminary injunction that could delay the merger for months.

The request follows U.S. District Judge Araceli Martinez-Olguin's decision earlier this week to issue a temporary restraining order, pausing the transaction for two weeks, as per Deadline. The judge is scheduled to hear arguments on 3 August over whether that temporary pause should be replaced with a longer preliminary injunction.

Paramount seeks expanded hearing

In a court filing submitted on Wednesday, Paramount proposed a three-day evidentiary hearing during the weeks beginning 17 August or 24 August. The company said it would agree to extend the temporary restraining order until the court reaches a decision following that hearing.

Paramount's legal team argued that the coalition of California and 11 other states is seeking an "extraordinary and drastic remedy" by asking the court to halt the merger without allowing the company to fully present its evidence.

The filing stated that factual disputes over market definition, competition, barriers to expansion and business incentives should be examined through witness testimony before the court determines whether the merger would substantially lessen competition.

Company warns of financial impact

Paramount also highlighted the financial consequences of a prolonged delay. Under the terms of its agreement with Warner Bros. Discovery, the company would owe a $7 million daily "ticking fee" if the transaction is not completed by 30 September.

Its lawyers argued that a preliminary injunction lasting several months could cost Paramount more than $1 billion through ticking fees and other expenses while creating significant commercial uncertainty around the deal.

Next court steps

The judge has already set a briefing schedule ahead of the 3 August hearing, with filings from both sides due over the coming days. Paramount, however, proposed an alternative timetable that would push written submissions further into August alongside its requested evidentiary hearing.

Meanwhile, the Writers Guild of America is pursuing a separate lawsuit seeking its own preliminary injunction against the merger and has asked the court to align its hearing with the states' case. Paramount opposed that timeline, arguing that a later hearing in August would be more practical.