A judge on Friday heard arguments on a state coalition’s bid for a restraining order to pause the Paramount-Warner Bros. Discovery merger, and said she would issue a ruling by next Wednesday.
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Judge Araceli Martinez-Olguin suggested at one point that Paramount had conceded that it will not suffer harm if a temporary restraining order is granted, which would put the merger on hold for up to 28 days.
Jeffrey Kessler, arguing for Paramount, made clear that the company is most focused on getting a ruling on a preliminary injunction by early September. He offered to stipulate that the deal will not close in the next 30 days if the parties would agree to a hearing on the injunction motion sometime in late August.
Starting on Sept. 30, Paramount will be on the hook to pay investors $7 million a day if the deal has not closed — a key deadline in the case.
Paramount has previously promised not to close the transaction before July 22.
More to come…