A federal judge on Thursday extended the order blocking Paramount and Warner Bros.’ merger for another 14 days, meaning the merger cannot be completed by Aug. 18.
Judge Araceli Martinez-Holguin is scheduled to hold a hearing on Aug. 3 on the request for a preliminary injunction to indefinitely block the deal. Paramount is seeking additional time to challenge the injunction.
A coalition of 12 state attorneys general argues that the agreement violates the Clayton Act by reducing 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 would suppress writers’ pay and lead to homogenization of content.
A judge on Monday issued a 14-day restraining order suspending trading pending the outcome of the injunction. The judge has the power to extend the order for up to 14 more days, and did so on Thursday.
Paramount is seeking a three-day evidentiary hearing in late August, arguing that it needs an opportunity to cross-examine each state’s witnesses. The company applied for an extension of the restraining order to allow that hearing to take place.
The states asked the judge to issue an injunction without holding a multi-day hearing. Last week, James Weingarten, the states’ attorney, argued that Paramount was effectively trying to shortcut the court process by holding evidentiary hearings without giving the states enough time to prepare.
In his rescheduling order Thursday, Martinez-Holguin urged the parties to see if any agreement can be reached. Martinez-Holguin also ruled that the WGA’s injunction claims will be resolved on the same schedule as the states’ claims.
The WGA’s motion is currently scheduled to be heard on August 3rd, along with the states’ requests for an injunction.
