Paramount Lawyer Still Expects WBD Merger To Close On Time Despite Lawsuits

Key Points:

• Despite an antitrust lawsuit filed by California, New York, and 10 other states, Paramount's lead trial counsel Jeffrey Kessler remains confident that the Warner Bros. Discovery merger will close before the end of September.
• Paramount has proposed two options to the attorneys general to facilitate the merger's approval, both of which were rejected, leading to the filing of a temporary restraining order (TRO) aimed at halting the deal.
• If the TRO is granted, it would pause the merger process for up to 28 days, after which any further blocking efforts would require a judge to issue a preliminary injunction, which Kessler expects will not be granted.
• Kessler argues the merger is pro-competitive and necessary to strengthen the struggling linear television and theatrical sectors, as well as to create a viable competitor in the streaming market against giants like Netflix, Disney, and Prime Video.
• Paramount is prepared to appeal any unfavorable rulings up to the Supreme Court and has committed to paying a $650 million quarterly "ticking fee" to keep the deal pending, reflecting confidence in regulatory approval.