Business 4 min read By Lauren Baxter
Block the Merger Coalition Urges Court to Reject Paramount Settlement With States
A coalition of advocacy groups has filed an amicus brief opposing the proposed settlement between Paramount Skydance and 12 state attorneys general, arguing the deal would harm competition and that the court should reject it.
A coalition of advocacy organizations has asked a federal court to reject a proposed settlement between Paramount Skydance and a group of state attorneys general, arguing that the deal fails to address the competitive harms of the company's $111 billion acquisition of Warner Bros. Discovery. The filing, made late Thursday by the Block the Merger coalition, comes as U.S. District Judge Araceli Martínez-Olguín weighs whether to approve the agreement.
The amicus brief — a filing by third parties who are not directly involved in the case — was submitted by Free Press, the Committee for the First Amendment, the Freedom of the Press Foundation, and other groups. In it, the coalition contends that the settlement's behavioral remedies are inadequate and that the court should instead block the merger outright. The brief points to public criticism from California's attorney general, who leads the plaintiff states, and who has questioned the very remedies the parties now want the court to approve.
«The Attorney General for the lead Plaintiff State, California, publicly criticized the very behavioral remedies that the parties now ask the Court to approve,» the coalition wrote in its filing. The states, led by California, filed an antitrust lawsuit seeking to stop the merger, and the proposed settlement would resolve that litigation without a full trial.
At a hearing on Thursday, Judge Martínez-Olguín questioned the parties about the legal underpinnings of their settlement. She has not yet ruled on whether to approve it, saying a decision will come in «due course.» The judge set the virtual hearing to address «outstanding questions» about the agreement, signaling that she is not prepared to sign off without further scrutiny.
The merger would combine Paramount Skydance — the parent of Paramount Pictures, CBS, and other media properties — with Warner Bros. Discovery, home to Warner Bros. Studios, HBO, CNN, and the DC film franchise. The deal, valued at $111 billion, would create one of the largest entertainment and news conglomerates in the world, consolidating major film and television studios under a single corporate roof.
Opponents argue that the combination would reduce competition in the production and distribution of film and television content, giving the merged company greater power over what audiences see and how much they pay. The Block the Merger coalition has been a persistent voice against the transaction, and its latest filing represents one of the final opportunities for critics to sway the court before a ruling.
The states' lawsuit is one of several regulatory and legal hurdles the merger faces. While the settlement would resolve the states' claims, it would not end all scrutiny. The coalition's brief urges the court to consider whether the proposed remedies — which typically involve commitments to maintain certain business practices — are enforceable and sufficient to protect consumers and competitors.
If the judge rejects the settlement, the case could proceed to trial, prolonging uncertainty for both companies. If she approves it, the merger would move closer to completion, though other regulatory reviews may still apply. For now, the parties await a ruling that could reshape the media landscape.
The coalition's filing underscores the high stakes of the case, which touches on antitrust law, media consolidation, and the future of entertainment. As the court weighs its decision, the outcome will be closely watched by industry observers, journalists, and consumers alike.
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