PSKY seeks November date for WBD antitrust trial while US state coalition wants April 2027

The Paramount lot in LA

Gary Bembridge via CC

Paramount Skydance (PSKY) is pushing for a November start date for the antitrust trial related to its acquisition of Warner Bros Discovery (WBD), while the 12-state coalition seeking to block the deal has requested April 2027.

In a joint filing submitted to the court on Friday, the parties made their respective cases before Judge Araceli Martínez-Olguín for when the trial should begin.

PSKY requested a 12-day trial starting on November 4, with the David Ellison-led company contending that the legal proceeding should move forward swiftly to put an end to market uncertainty.

PSKY is incentivised to ensure the trial begins as quickly as possible as, per the terms of its acquisition agreement, it will be required to pay WBD shareholders a daily “ticking fee” if the transaction has not closed by September 30.

The fee is equal to US$0.25 per share per quarter, or around US$7m per day, meaning it would already owe WBD shareholders around US$250m by November 4. By April 1, 2027, the ticking fees could amount to more than US$1.2bn.

On the other side, the 12-state coalition led by California attorney general Rob Bonta asked for a 12- to 15-day trial beginning on April 5, 2027.

The states are arguing that they require more time to adequately prepare for the trial, with Bonta saying this “clean-cut antitrust challenge” deserves a “careful and thorough review.”

The decision on when the trial will ultimately be scheduled is with Martínez-Olguín, who last month granted the state coalition’s request for a temporary restraining order blocking the deal.

PSKY subsequently agreed to pause the merger until either five days after a trial is held or June 1, 2027, whichever comes first.

If the deal fell apart altogether, PSKY would be required to pay a US$7bn regulatory termination fee.

The state coalition is arguing that the PSKY-WBD merger would hurt competition in theatrical film releasing and cable TV distribution. For its part, PSKY argues that its merger will increase competition by creating a company with the ability to stand toe-to-toe with some of the tech giants that have become dominant forces in Hollywood over more than a decade.