SAN LUIS OBISPO, CALIF. — An Oakland-based U.S. District Judge has signed off on a stipulation and order that presents a small victory to WGA West and a group of state Attorneys General led by California’s Rob Bonta, as Paramount Skydance has agreed to hold off closing its proposed merger with Warner Bros. Discovery until a date that could come as late as June 1, 2027.
Following meetings on Thursday and Friday with legal counsel for both the plaintiffs and defendant in the combined lawsuits designed to stop the merger of CBS News & Stations’ parent with that of Turner Sports, it was agreed that Paramount “will not take any steps, directly or indirectly, to integrate or consolidate their operations pursuant to the transaction” until the earlier of five days after the merits determination in these matters, or the first day of June of next year.
This led Araceli Martínez-Olguín, the U.S. District Court Judge for the Northern District of California, to cancel the briefing deadlines and August 3 hearing date for the state AG’s motion for preliminary injunction. And, the WGA West motion for a preliminary injunction was withdrawn, with the understanding that it could file a fresh P.I. order (as can the state AGs) should it desire to do so, if necessary, at a “later date.”
The decision from Paramount Skydance came just one day after Martínez-Olguín extended her TRO pausing the merger with WBD by an additiona two weeks, to August 17 from August 3. This was done based on a need to resolve two preliminary injunction motions, the parties’ disputes regarding the schedule, and the proposed format of the preliminary injunction hearing. She also cited Paramount Skydance’s stated willingness to abide by the terms of the TRO “for some weeks into the future.”
Importantly, the one-time National Immigration Law Center supervising attorney and American Civil Liberties Union Immigrants’ Rights Project (IRP) Staff Attorney stated she was “unwilling to test the boundaries of its authority by extending the TRO’s effect beyond” 28 days.
The key issue the court faces is whether or not the combination of WBD and Paramount Discovery is a Clayton Antitrust Act violation, largely due to the film studios and cable television networks; WBD does not own broadcast television stations.
The proposed $111 billion merger between Warner Bros. Discovery and Paramount Skydance has the potential to reshape the Southern California feature film and televised entertainment industry, and news of the “long delay” in the merger from veteran reporter Meg James made the top story position in Saturday’s editions of the Los Angeles Times.
Originally, Paramount Skydance hoped to close on its WBD merger by the end of the third quarter, allowing Turner Sports and CBS Sports to enjoy combined synergies as the 2026-2027 pro sports season began.
