A federal judge in Oakland, California, has set a 2 March 2027 trial date for the antitrust lawsuits seeking to block Paramount Skydance’s $110bn acquisition of Warner Bros. Discovery, effectively freezing the transaction until the legal challenge is resolved. U.S. District Judge Araceli Martínez-Olguín ordered a 12-day trial ending 19 March, rejecting Paramount’s request for a November hearing. The company has agreed to delay closing the deal until the trial concludes, marking a significant procedural setback for what would be one of the largest media mergers in history.

The lawsuits were filed separately by a coalition of 12 Democratic-led states, led by California Attorney General Rob Bonta, and by the Writers Guild of America. The states argue that combining two of the five largest film distributors would give the new company roughly 27% of wide-release theatrical distribution and a similar share of basic cable licensing, reducing competition and harming consumers. The Writers Guild contends the merger would erode bargaining power for writers. In a combative New York Times op-ed, Paramount CEO David Ellison argued the opposition is not really about market share but about whether he “can be trusted as a steward of Warner’s CNN.” He noted that regulators in 65 countries, including the United States and the European Union, have already approved the deal.

The extended delay carries heavy financial consequences. Under the merger agreement, Paramount must pay Warner Bros. shareholders approximately $7m per day in so-called ticking fees starting 1 October, adding up to an estimated $1.18bn by the end of the trial. If the deal collapses, Paramount would owe a $7bn termination fee. The cost pressure coincides with Paramount’s mixed quarterly results: second-quarter revenue inched up 1% to $6.91bn, but profit fell 28% to $41m, partly due to $153m in merger-related expenses. Streaming subscribers reached 81.6m, with the Paramount+ service boosted by events such as the UFC Freedom 250 fight held at the White House.

Political scrutiny has intensified around Ellison’s stewardship of news operations. The op-ed came amid staff unease at CNN and CBS News after Ellison installed Bari Weiss, a long-standing critic of progressive politics, as CBS News editor-in-chief. Multiple CBS journalists resigned following her appointment, alleging curbs on editorial independence. Ellison, the son of Oracle founder Larry Ellison, has faced questions about his ties to President Donald Trump, including hosting a private dinner honouring the Trump administration and attending Trump’s State of the Union address. In his op-ed, Ellison insisted he has “regularly voted for candidates of both parties” and does not aspire to “bend their newsrooms to my views.”
The next major milestone is the trial itself, scheduled to begin in Oakland on 2 March 2027. Until then, the merger remains blocked, and Paramount continues to accumulate daily penalty payments while defending the deal in court.