The legal battle surrounding the proposed $111 billion merger between Paramount Skydance and Warner Bros. Discovery will continue for at least a few more weeks.
A U.S. District Court judge has extended the temporary restraining order that is currently preventing the transaction from moving forward. Judge Araceli Martinez-Olguin ruled Thursday that the order, which was initially set to last 14 days, will now remain in effect through August 18.
According to The Hollywood Reporter, the extension is intended to give both sides additional time “to come to an agreement on the schedule and format for legal proceedings on a preliminary injunction,” which, if granted, would freeze the merger until the lawsuit is resolved.
The court is scheduled to hear arguments on the preliminary injunction motion on August 3.
The lawsuit was filed by a coalition of state attorneys general led by California Attorney General Rob Bonta. The group argues that the proposed merger violates a more than century-old antitrust law and would create an anticompetitive landscape within the theatrical exhibition industry.
The ongoing legal fight could also have implications for AEW. Warner Bros. Discovery currently holds the domestic broadcast rights to AEW programming through 2027, with an option to extend the agreement for an additional year. If the case drags on toward trial and extends beyond 2027, it could leave the future of the company’s media landscape in a more uncertain position.
