A federal judge has scheduled the antitrust trial over Paramount’s proposed $110 billion merger with Warner Bros. Discovery for next March. U.S. District Judge Araceli Martínez-Olguín wrote that the trial will take place from March 2 to March 19 of next year in federal court in Oakland.

Merger Details

The trial dates are significant because after Sept. 30, Paramount will have to pay about $7 million for every day the transaction doesn’t close, under an agreement with WBD. Paramount previously announced that the planned takeover would remain on hold while it defends against antitrust lawsuits filed last month by a coalition of 12 state attorneys general led by California.

California Attorney General Rob Bonta said last week that if the court finds in favor of the states, the merger would be blocked pending appeal. “Our argument against this illegal merger is straightforward: When too few corporations have too much power in markets central to American life, it makes things more expensive, and it makes things worse,” Bonta said in a statement.

Industry Impact

The Writers Guild of America sued to block the deal on the grounds it would cause harm to writers and shrink the labor market. The guild alleges Paramount’s pending acquisition of WBD would reduce opportunities, lower pay and worsen working conditions for writers.

Paramount reported mixed quarterly numbers Tuesday with strong streaming and a continuing drop in traditional broadcast TV viewing. The company also said it “fully expects” the merger to close. “As it relates to the planned acquisition of Warner Bros. Discovery, we fully expect the transaction to close and remain focused on preparing for a successful combination once it is complete,” Paramount CEO David Ellison wrote in a letter to shareholders.

Original reporting: NBC4 Los Angeles — read the source article.