Overview
- The court extended a temporary restraining order for another 14 days on Thursday, preventing the companies from closing the transaction until at least mid‑August so parties can set a schedule for further proceedings.
- A preliminary‑injunction hearing is set for Aug. 3 to consider motions by a coalition of 12 state attorneys general and the Writers Guild of America seeking to block the merger pending a full trial.
- Paramount has proposed a three‑day evidentiary hearing in late August to cross‑examine experts and resolve factual disputes about market definition and competition, and the states oppose a multi‑day hearing at the injunction stage.
- In a new court filing, Paramount agreed not to close the deal until five days after merits rulings in the state and WGA cases or until June 1, 2027, but the agreement does not remove a contractual ticking fee that starts after Sept. 30 and adds roughly $6.9–$7 million per day.
- The dispute sets federal court fights against earlier DOJ clearance, with states focused on narrow markets such as theatrical distribution and basic cable while the WGA argues the merger would lower writers’ pay and reduce creative opportunities, and separate foreign and shareholder reviews could further delay or condition any closing.