A federal judge in California has set a March 2027 trial date to resolve legal challenges to Paramount Skydance's planned purchase of Warner Bros. Discovery. The court ruled that the merits of the lawsuits will be heard at a 12-day trial scheduled for March 2027.
The litigation is brought by a group of states led by California and by the Writers Guild of America. The states contend the transaction would harm competition in film and television distribution. The Writers Guild argues the deal would reduce competition for writing assignments.
Prosecutors and the union sought an earlier trial date, with California's attorney general asking for an April date, while Paramount had pushed for a November start. The judge's March 2027 schedule falls between those proposals.
As part of the proceedings, Paramount has consented to delay closing the transaction until a judicial determination is reached, or until June 2027, whichever occurs sooner. That agreement effectively places a hold on completing the merger while the litigation plays out.
The trial will examine the claims advanced by the state coalition and the Writers Guild over 12 court days. The states' case centers on potential harms to competition in distribution channels for movies and television. The union's claim focuses on the prospect that the combination would lessen competition for writers' employment opportunities.
Paramount has defended the proposed acquisition, saying the transaction will spur additional content production and contribute to a stronger Hollywood. The company maintains the deal's benefits for production and industry vitality.
The court-ordered timetable carries financial implications tied to the merger agreement. If the deal's closing is pushed into next summer, Paramount could face contingent fees of up to $1.7 billion that it agreed to pay Warner Bros. shareholders under the terms of the transaction.
The March 2027 trial date now fixes the legal schedule for resolving the competing claims and determining whether the parties may proceed with the deal before or after that judicial determination.