States Seek 2027 Trial in Paramount-Warner Bros. Antitrust Case

According to Variety, the states argue that the proposed merger would unlawfully reduce competition in key entertainment markets, including theatrical film distribution and basic cable television. The lawsuit, led by California and joined by 11 other states, contends the transaction would give the combined company greater market power, potentially resulting in higher prices, fewer entertainment choices and reduced output.

Variety reported that Paramount is seeking an earlier trial, saying the company wants to resolve the legal dispute more quickly. The publication said the differing proposals over scheduling underscore the high stakes surrounding the proposed merger, which has already faced multiple legal challenges despite receiving regulatory clearance or non-opposition from several government authorities outside the states’ lawsuit.

Related: Film Producers Raise Antitrust Concerns Over Paramount-Warner Deal

According to Variety, the companies previously agreed not to complete the transaction until after the antitrust case is resolved or until June 1, 2027, whichever comes first. That agreement eliminated the need for an earlier court hearing over whether the merger should be temporarily blocked while the case proceeds.

The states maintain that delaying the transaction preserves competition while the court considers the merits of their claims, according to Variety. Paramount, meanwhile, disputes the allegations and argues the combination would strengthen its ability to compete with larger technology and streaming companies, the publication reported.