Paramount Skydance agrees to link antitrust case with subscriber suit
Paramount Skydance has agreed to link its federal antitrust fight over the Warner Bros. Discovery merger with a separate lawsuit brought by Paramount+ subscribers, after 12 states asked a court to consolidate the cases. The deal could route both challenges before Judge Araceli Martinez-Olguin, who is already overseeing the subscriber suit. The agreement keeps merger litigation in one Northern District of California courtroom as the company pushes toward closing its $111 billion transaction.
Key Takeaways
- Paramount Skydance agreed to join 12 states in linking the merger antitrust case to an existing Paramount+ subscriber lawsuit.
- Consolidation would likely send both suits to Judge Araceli Martinez-Olguin, who already handles the subscriber case.
- California Attorney General Rob Bonta led the state coalition and argued one judge should hear both matters for efficiency.
- Paramount filed its supporting motion on Tuesday; a company spokesperson declined to comment.
- A hearing on the subscriber suit is scheduled for Thursday, while no hearing has yet been set on the states' injunction request.
What Did Paramount Skydance Agree to Link?
On Monday, California Attorney General Rob Bonta's office filed a motion to relate the states' newly filed antitrust case to a lawsuit that Paramount+ subscribers brought in April. Those subscribers allege the merger would harm competition and drive up prices.
The state coalition argued it would be more efficient for a single judge to consider both suits together. Paramount filed a motion on Tuesday joining that request, formally agreeing to link the proceedings.
The states' case challenges Paramount Skydance's planned merger with Warner Bros. Discovery. A Paramount spokesperson declined to comment when contacted.
Why Does Linking the Cases Matter?
When multiple lawsuits target the same transaction, courts can assign them to one judge to avoid conflicting rulings and duplicated work. Here, the subscriber suit was already pending before Judge Martinez-Olguin, a Biden appointee in the Northern District of California.
Linking the state antitrust case to that file means the $111 billion merger challenge will likely land with the same judge rather than staying with Judge P. Casey Pitts, to whom the states' case was randomly assigned on Tuesday. Pitts, also a Biden appointee, represented the Writers Guild of America in a 2019 fight over agency packaging fees; the WGA is among the merger suit's strongest supporters.
Pitts presides in San Jose and will likely not keep the case for long if consolidation is granted. For updates on streaming industry legal battles, see our Streaming & TV Alerts coverage.
What Happens Next in Court?
Judge Martinez-Olguin is scheduled to hold a hearing on Thursday on the subscribers' motion for a preliminary injunction and on Paramount's motion to dismiss the subscriber suit. That session could shape how quickly the consolidated litigation moves.
Separately, the 12 states are asking for a temporary restraining order and an injunction that would prevent the merger from closing. No hearing has yet been scheduled on that motion.
Variety first reported Paramount's agreement to link the cases. The development adds another procedural layer to one of Hollywood's most closely watched merger fights.