Click here to read the full article.
A federal judge on Thursday extended the order blocking the Paramount-Warner Bros. merger for an additional 14 days, meaning the deal cannot close before Aug. 18.
Judge Araceli Martinez-Olguin is scheduled to hold a hearing
on Aug. 3 on a request for a preliminary injunction that would block the deal indefinitely. Paramount is asking for additional time to make its case against the injunction.
A coalition of 12 state attorneys general alleges that the deal violates the Clayton Act because it would reduce competition in the basic cable and theatrical distribution markets. The Writers Guild of America has also filed a separate challenge to the $111 billion merger, saying it will suppress writers’ pay and lead to a homogenization of content.
The judge on Monday issued a 14-day restraining order to pause the deal pending the outcome of the injunction motion. The judge has the power to extend the order for up to an additional 14 days, and did so Thursday.
Paramount is pushing for a three-day evidentiary hearing in late August, saying the company needs the opportunity to cross-examine the states’ witnesses. The company has offered to extend the restraining order to allow that hearing to take place.
The states have urged the judge to rule on the injunction without a multi-day hearing. Last week, the states’ attorney James Weingarten argued that Paramount was effectively seeking to short-circuit the trial process by holding an evidentiary hearing without giving the states adequate time to prepare.
In her scheduling order on Thursday, Martinez-Olguin urged the parties to see if they could come to some agreement. Martinez-Olguin also ruled that the WGA motion for an injunction would be resolved on the same schedule as the states’ motion.
As of now, the WGA motion is set to be heard on Aug. 3 along with the states’ request for an injunction.
