US judge sets 2027 trial date to block Paramount-Skydances 110 billion Warner Bros Discovery deal

A federal judge in California on Tuesday set a March 2, 2027, trial date for the antitrust lawsuit challenging Paramount Skydance’s proposed $110 billion acquisition of Warner Bros. Discovery, delaying the deal by months. The decision follows a request from 12 states, led by California and New York, and the Writers Guild of America, which argue the merger would substantially reduce competition in Hollywood .

Paramount Skydance agreed to postpone the acquisition after Judge Araceli Martínez-Olguín signaled she saw merit in the plaintiffs’ arguments for a preliminary injunction. The company had previously sought an November trial date, warning that prolonged delays risked the deal’s completion . The trial will now span 12 business days, with the merger’s fate hinging on the court’s ruling.

To secure Warner Bros. Discovery shareholders’ support, Paramount CEO David Ellison pledged additional quarterly payments of $650 million if the deal fails to close by Sept. 30. Analysts estimate this could add at least $1.3 billion to the acquisition’s cost. The companies have set a hard deadline of June 4, 2027, to finalize the merger; if missed, Warner Bros. Discovery may terminate the agreement and claim a $7 billion breakup fee, though an extension remains possible .

The lawsuit alleges the merger would give the combined entity roughly 27% of the U.S. film distribution market and over 30% of major box office releases, violating the Clayton Act. The Writers Guild of America, representing nearly 20,000 members, separately argued the deal would lead to mass job losses and reduced wages for writers .

Ellison has defended the acquisition, stating it would preserve independence and avoid market domination. He also dismissed political motivations behind the opposition, though critics note the deal would place CNN and CBS News—two major U.S. news outlets—under the same ownership. Paramount’s backers include the family of software billionaire Larry Ellison, a known supporter of former President Donald Trump, who has publicly emphasized the importance of CNN changing hands .

California Attorney General Rob Bonta, leading the state coalition, reiterated his opposition, stating, “When too few corporations have too much power in markets central to American life, it makes things more expensive, and it makes things worse.” Bonta previously framed the fight in stark terms, telling reporters in Griffith Park, “[Paramount Skydance CEO] David Ellison may think this is an offer we can’t refuse. But I’m here to say, he’s wrong” .

Paramount has countered that the deal would create a stronger studio to compete with streamers like Netflix and that the plaintiffs’ market definitions are flawed. The company called the agreement to proceed directly to trial a “significant win,” arguing it provides the clearest path to proving the merger’s benefits .