Judge Clears Consumer Challenge as Support Grows for Paramount–Warner Bros. Merger

A U.S. federal judge has dismissed a consumer lawsuit seeking to block the proposed $110 billion merger between Paramount Skydance and Warner Bros. Discovery, clearing one legal hurdle for the blockbuster deal. However, the plaintiffs have been given permission to amend and refile their complaint.

Judge Araceli Martínez-Olguín ruled that the five consumers who brought the case failed to demonstrate they would suffer direct economic harm from the merger. The court also found that the complaint relied largely on general claims about reduced competition without providing sufficient factual evidence.

While the consumer case has been dismissed, the merger still faces a much larger challenge. A coalition of 12 U.S. state attorneys general and the Writers Guild of America West have filed separate antitrust lawsuits arguing the transaction would reduce competition across the entertainment industry. The trial is currently scheduled to begin on March 2, 2027.

The delay carries significant financial consequences. Under the merger agreement, Paramount will begin paying substantial "ticking fees" if the transaction remains unresolved beyond the agreed deadline, increasing pressure on both companies to secure court approval.

Paramount CEO David Ellison has strongly defended the acquisition, arguing in a recent opinion article that the opposition is driven less by competition concerns than by fears over his future oversight of CNN. He insisted that both CNN and CBS News would maintain their editorial independence under his leadership.

Support for the merger has also grown within the cinema industry. After AMC Theatres endorsed the transaction earlier, Regal Cinemas CEO Eduardo Acuna announced his backing, saying the combined company has committed to releasing at least 30 theatrical films annually, maintaining extended theatrical windows and investing heavily in new content.

Not everyone agrees. Industry trade body Cinema United continues to oppose the merger, warning it could ultimately reduce the number of films released, increase costs for exhibitors and accelerate cinema closures.

The proposed merger has already received regulatory approval in several international markets, but its future now largely depends on the outcome of the U.S. antitrust proceedings. Until then, one of Hollywood's biggest-ever media deals remains in legal limbo.