Paramount And Warner Bros. Merger Hits Another Roadblock

Image Source: CBS News

Paramount hit another roadblock on its way to acquiring Warner Bros. Discovery. A hearing was set for this past Thursday, September 24, but just before the hearing, Judge Araceli Martínez-Olguín granted an emergency motion. This “Hail Mary” move gave both parties in the suit a deadline of 12:01 am PST to file all amicus briefs with a note that tardy submissions will not be considered. Jessica J. González, Free Press Co-CEO and  Block The Merger (BTM) co-counsel, responded to the stay in an interview with Deadline. She said, “We are pleased that the court is allowing the public to weigh in on this important issue because the AGs [attorney generals] have failed to adequately represent the public interest in this case.” She continued, “The consent decree is weak and unenforceable. We look forward to explaining that in our brief due at midnight tonight.” The consent decree would have forced Paramount to treat Warner Bros. Discovery as a separate entity and divest from Miramax and pay $30 million to a fund for Hollywood Union members if it failed to produce thirty movies a year.

While this significantly undercuts the profit of the merger, the group behind BTM and other concerned industry professionals say it doesn’t do enough to address the job loss and economic downturn concerns. New Jersey Democratic Senator Cory Booker claimed the consent decree failed to address the core concern “that the merger is anticompetitive and will eliminate jobs.” The judge’s ruling acts as an extra penalty for Paramount. Starting October 1, the company will have to pay several million dollars a day to shareholders for each day the merger fails to close.

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Source(s): Deadline, IndieWire

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