A federal judge on Thursday denied a request from a group of Paramount subscribers to block the pending $110 billion merger between Paramount and Warner Bros. Discovery, clearing one legal obstacle for the deal while several others remain, according to The Wrap.
Judge Araceli Martínez-Olguín denied the preliminary injunction, which the group had sought after filing their lawsuit in April. The plaintiffs argued the merger would give the combined company the ability to raise prices, reduce content output, narrow film slates, and worsen terms for consumers. They also claimed moviegoers would face fewer theatrical titles and less variety.
Paramount responded that the plaintiffs lacked standing and that no injury could be attributed to a merger that has not yet been completed.
Martínez-Olguín sided with Paramount. "A preliminary injunction is an extraordinary remedy that may only be awarded upon a clear showing the plaintiff is entitled to such relief," she said during Thursday's hearing. "Here, plaintiffs fail to meet that standard. Plaintiffs have not offered any evidence and have not made a clear showing of a likelihood of success, nor do they make a clear showing of irreparable harm."
The ruling is a win for Paramount, but the company still faces three additional lawsuits. A coalition of 12 state attorneys general argues the merger would give the combined entity control of 27% of the wide-release theatrical distribution market, 30% of the submarket for anticipated blockbuster films, and 27% of the basic cable bundle. That case was reassigned to Martínez-Olguín after Paramount's lawyers sought the recusal of the previous judge over concerns about his prior work as labor counsel for the Writers Guild of America.
The WGA has its own lawsuit, arguing the deal would eliminate competition and allow the combined company to suppress writers' wages and reduce output.
A separate shareholder lawsuit alleges that the Ellison family, which leads the David Ellison-controlled Paramount, entered into an undisclosed agreement to reshape CNN to align with the Trump administration's views on news media in exchange for political support for the transaction. The suit characterized the alleged arrangement as a "corrupt" side deal that was never disclosed to investors.
A hearing on the state attorneys general request for a temporary restraining order was scheduled for Friday morning.