Paramount and Warner Bros. Discovery’s merger is facing another legal challenge over the proposed settlement. The hurdle comes just days after the companies reached an agreement with a group of state attorneys general.
According to a Deadline report, a coalition of more than 40 public-interest, labor, consumer, and civil rights organizations is now asking a federal judge to allow it to object to the proposed antitrust settlement before the $110 billion transaction can move forward.
Earlier this week, a bipartisan group of 12 state attorneys general, led by California, reached a settlement in their lawsuit seeking to block the merger. The proposed consent decree includes several commitments intended to address concerns about the combined company’s impact on the entertainment industry.
Among the measures are theatrical release requirements, regional employment protections, and commitments related to domestic production spending.
The settlement, however, has drawn criticism from groups that argue the agreement does not go far enough. The Block the Merger Coalition claims that the proposed terms rely too heavily on behavioral promises rather than requiring structural changes to the transaction.
The coalition has asked U.S. District Judge Araceli Martínez-Olguín to formally allow it to object to the agreement.
Judge Martínez-Olguín has scheduled a hearing for Thursday morning to examine the proposed consent decree, including the legal basis for the settlement and how its commitments would be enforced if the merger is completed.
What organizations are part of the Block the Merger Coalition?The coalition brings together multiple organizations representing public-interest advocates, labor groups, consumer organizations, civil rights groups, and media watchdogs. Members of the opposition include the media democracy organization Free Press, Democracy Defenders Action, Writers Guild-affiliated groups, and organizations focused on protecting independent journalism.
The coalition has also organized broader opposition to the merger across the entertainment industry. More than 1,000 industry figures have reportedly voiced concerns about the proposed combination, with critics arguing that bringing Paramount and Warner Bros. Discovery under one corporate owner could affect competition, workers, creative opportunities, and the range of viewpoints represented across entertainment and news.
The latest challenge does not necessarily determine whether the merger will proceed, but it adds another legal challenge for Paramount and Warner Bros. Discovery to navigate.
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