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Judge Rejects Subscribers’ Bid to Halt Paramount-Warner Bros. Dea
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Judge Rejects Subscribers’ Bid to Halt Paramount Warner Bros. Deal

A group of Paramount+ subscribers failed on Thursday to stop Paramount’s planned merger with Warner Bros. Discovery. However, the media company faces another legal challenge on Friday from a coalition of 12 state attorneys general.

The subscribers filed a lawsuit in April. They claimed the merger had led to higher prices and could limit viewing choices for consumers. They asked a federal court to issue a preliminary injunction to pause the deal.

Judge Denies Injunction Request

At a hearing in Oakland, California, U.S. District Judge Araceli Martinez-Olguin denied the request.

“It’s extraordinary preliminary relief, and plaintiffs failed to submit a single item of evidence in support of the motion,” the judge said. “Moreover, I have some serious doubts about plaintiffs’ standing to pursue these antitrust claims.”

The ruling gives Paramount an early victory in the legal battle over the proposed $111 billion merger.

Paramount Defends the Deal

Paramount’s lead lawyer, Jeffrey Kessler, argued that the subscribers had not provided evidence to justify an injunction.

“It’s very clear in this circuit and elsewhere that to get a preliminary injunction, you have to make a clear showing with evidence,” Kessler argued. “And when there is no evidence, then you cannot get a preliminary injunction.”

Paramount has also filed a motion to dismiss the lawsuit. The judge has not yet ruled on that request.

States Set for New Court Challenge

The company now faces a separate lawsuit from 12 state attorneys general. The states filed their case on Monday and are seeking a temporary restraining order.

They argue that the merger would reduce competition in the theatrical and basic cable markets.

Earlier on Thursday, Paramount asked the court to reject the states’ request. The company said the states are unlikely to succeed in their case.

Plaintiffs Seek More Information

During the hearing, the judge asked plaintiffs’ attorney Joseph Alioto how he would revise the lawsuit if given the chance.

“We’re a private group,” Alioto said. “We’re not a government. We don’t have the tools of a government.”

Responding to criticism over previous merger lawsuits, Alioto said, “That’s true that these plaintiffs have filed other cases, and we’re proud that they did.”

The merger is also facing separate legal challenges from the Writers Guild of America and shareholder groups.

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