$110 Billion Paramount–Warner Bros. Merger Hits Last-Minute Snag: Judge Opens the Door to Deal Opponents

The more than $110 billion merger between Paramount and Warner Bros. Discovery — one of the most dramatic Hollywood business sagas of the year — took an unexpected last-minute turn on Thursday. Federal Judge Araceli Martínez-Olguín granted the grassroots coalition “Block the Merger” request for extra time to formally oppose the consent decree (settlement agreement).

Under the judge’s order, all amicus briefs must be filed no later than 12:01 a.m. PST on September 25, 2026. According to Deadline, the ruling makes it almost certain that the deal will not be formally approved on Thursday, at the virtual hearing set for 11:00 a.m. (Pacific time), which had been expected to be a formality.

The “Block the Merger” coalition has called the consent decree “weak and unenforceable.” In its filing, the coalition raised serious questions about whether the approval decree would erase potential claims by citizens in the plaintiff states, argued that many provisions fail to resolve antitrust concerns, and warned of First Amendment (press freedom) problems. The coalition also proposed a review schedule extending to October 13.

A delay until October 13 would pass the early-October deadline, when Paramount must start paying Warner Bros. Discovery $7 million a day if the deal is not closed. Paramount opposed the coalition’s request, calling the proposed briefs “inappropriate.”

Context: on September 21, California Attorney General Rob Bonta announced the settlement agreement with Paramount. According to his office, the merged company must produce 30 films a year (20 with wide distribution) for the first two years, then 32 films (21 with wide distribution) in years 3–5, plus at least 4 independent films a year. Variety reported that Paramount agreed not to sell the California studio lots for at least 5 years and to invest an additional $300 million a year in U.S. film production, while CNN reported the creation of an independent board for the editorial independence of CNN and CBS News.

The deal has also divided the officials who brought the lawsuit: Connecticut Attorney General William Tong said his office wanted full divestiture of CNN and CBS News but didn’t get it. Variety noted that Bonta had previously insisted that only “structural remedies” such as divestitures would be enough to end the lawsuit — but the final agreement contains none. On the other side, industry groups such as IATSE and the Directors Guild of America welcomed the agreement for the stability and enforceable protections it brings. Paramount CEO David Ellison had told employees he expected closing within about two weeks, while Warner Bros. Discovery CEO David Zaslav said the deal would close no later than early October — but now every day of delay carries a real financial cost.

Source: Deadline / Variety / CNN — https://fictionhorizon.com/paramount-warner-bros-merger-hits-a-last-minute-snag-as-judge-opens-the-door-to-deal-opponents/