Judge Araceli Martinez-Olguin has set March 2, 2027, for the antitrust trial determining whether Paramount can complete its $111 billion acquisition of Warner Bros. Discovery.
The legal proceedings will run for 12 business days through March 19, following a pre-trial hearing scheduled for February 24. The schedule set by the court represents a setback for Paramount Skydance, which had requested a trial start in November 2026 to expedite the takeover.
A coalition of prosecutors from 12 states along with the Writers Guild of America, who oppose the transaction, had requested an April 2027 trial date. The court selected a mid-March timeline that leaves the transaction in suspense for several months.
The delay imposes a heavy financial penalty on Paramount. Starting October 1, 2026, the company will accumulate a daily fee of $7 million that it must pay to Warner Bros. Discovery shareholders until the acquisition is finalized. Calculations published by industry trade journal Variety indicate that if the trial concludes on schedule, Paramount will accumulate approximately $1.2 billion in total fee payments.
State attorneys general and writers file suit
The legal opposition to the consolidation is led by the attorney general of California alongside prosecutors from 11 other states. The lawsuit contends that acquiring Warner Bros. Discovery would illegally reduce market competition across television and theatrical film distribution networks.
The Writers Guild of America has filed a separate lawsuit opposing the deal. The labor union, which represents professional screenwriters across the entertainment industry, argues that corporate consolidation of this scale would harm wages, working conditions, and employment opportunities for writers.
Antitrust regulators and industry unions have increasingly scrutinized major media consolidations in recent years over concerns about shrinking competition and reduced bargaining power for creative workers. Federal antitrust law prohibits mergers that substantially lessen competition or tend to create a monopoly in key product markets.
Paramount points to Netflix and CNN
Paramount maintains full confidence that the transaction will ultimately close. David Ellison, chairman and chief executive of Paramount, stated that the company remains prepared to seek an out-of-court settlement with government authorities, though he emphasized that the facts and relevant legislation favor Paramount and that he expects to win in court.
Ellison also questioned whether market concentration was the genuine motive behind the legal action, suggesting that political concerns surrounding the potential acquisition of cable news channel CNN were influencing the opposition.
Paramount argues that combining with Warner Bros. Discovery is essential to form a stronger competitor against global streaming leaders such as Netflix and Amazon Prime Video. The company stated that financing for the takeover is fully in place and that management continues to work toward closing the deal as quickly as possible.
