A federal judge in California has once again put the brakes on the planned merger between Paramount and Warner Bros. Discovery, granting outside opponents permission to weigh in with formal objections before the deal can move forward.
District Judge Araceli Martinez-Olguin issued the ruling Thursday, approving administrative motions that allow critics to file amicus briefs in the case, according to Deadline. The judge, appointed to the bench by President Joe Biden in 2023, set a deadline of 12:01 a.m. on September 25 for those friend-of-the-court filings to be submitted. The practical effect is that the merger is blocked for at least one more day.
The decision is the latest twist in a contentious review that has pitted the two media giants against a coalition of state attorneys general and advocacy groups. Paramount has argued strongly against any further delays, warning that each day the deal remains in limbo imposes real costs on the company and its shareholders.
Opponents Say the Settlement Falls Short
Groups challenging the merger argue that the settlement reached between Paramount and a dozen state attorneys general does not do enough to protect the public interest. In a statement, Jessica J. González, co-CEO of Free Press and co-counsel for the group Block the Merger, said the state attorneys general “failed to adequately represent the public interest.” She also called the consent decree “weak and unenforceable.”
That settlement, reached with 12 state attorneys general, was meant to resolve litigation risks and clear a path for the deal. But the outside groups contend that the negotiated terms are insufficient and want the court to consider their objections before the merger proceeds.
Paramount Warns of Financial Fallout
Paramount and Warner Bros. Discovery fought the request for amicus briefs, telling the court that outside parties should not be allowed to stall a deal that the companies say would “inflict massive harm on Paramount” if further delayed.
In court filings, Paramount’s lawyers defended the settlement as “both procedurally and substantively fair,” noting that it followed “extensive and difficult negotiations.” The company said all sides were represented by sophisticated counsel and that the proposed consent decree “includes significant relief in each of the three relevant markets alleged in the Complaint.”
Paramount’s legal team also pushed back on the idea that dissatisfaction from non-parties should derail the agreement. “The fact that non-parties would have preferred different terms or a different resolution does not change this analysis,” the lawyers wrote, “particularly because the proposed consent decree only binds the parties that consented to it.”
The financial stakes are steep. According to the source material, the ongoing delay could cost Paramount more than $630 million per quarter — a figure that reflects a ticking fee owed to Warner shareholders, described as roughly $7 million per day.
Paramount had reportedly expected the deal to close within about two weeks. With the judge’s latest order, that timeline is now in question again, and the company faces the prospect of continuing to absorb daily penalties while the objections are reviewed.
The merger between Paramount and Warner Bros. Discovery would combine two of Hollywood’s most storied studios, and it has drawn intense scrutiny from regulators, state officials, and advocacy organizations concerned about consolidation in the media industry. The case is being heard in federal court in California.
Source: www.breitbart.com — https://www.breitbart.com/entertainment/2026/09/24/paramount-warner-bros-merger-delayed-as-judge-oks-rivals-request-to-block-settlement/