Paramount subscribers ask Supreme Court to halt Warner Bros. Discovery merger due to close Tuesday

Mixed · 2Paramount subscribers filed an emergency application at the US Supreme Court on Monday 5 October asking for an order to stop Paramount closing its $110 billion acquisition of Warner Bros. Discovery, which is scheduled to complete on Tuesday 6 October. 1 2 Centre · 1The petitioners are Pamela Faust, Len Marazzo, Lisa McCarthy, Deborah Rubinsohn and Gary Talewsky, represented by Joseph M. Alioto; they describe themselves as Paramount subscribers, viewers and cable customers. 2 Mixed · 2The Hollywood Reporter says the filing asks Justice Elena Kagan to bar the closing until the case is considered; Deadline says the plaintiffs seek at least a temporary halt, with an order that would preserve separate ownership and prohibit integration pending disposition of the petition or further order. 1 2

Mixed · 2Their lawsuit was filed last spring, before a group of state attorneys general sued to block the deal. They allege the acquisition will substantially reduce competition in streaming, news and theatrical distribution in violation of antitrust law. 2 1 Mixed · 2Last week U.S. District Judge Araceli Martinez-Olguin approved a settlement between Paramount, the states and the Writers Guild of America and declined the subscribers' request for a temporary restraining order, citing their "repeated failures to advance any evidence in support of their motions for preliminary relief". She had earlier dismissed the lawsuit on Paramount's motion, voicing "serious concerns" about the plaintiffs' standing, and a federal appeals court denied their petition on Friday. 1 2 Left · 1The settlement requires at least 30 theatrical films a year for the first two years and 32 for the following three, minimum numbers of wide and independent releases, separate basic-cable negotiations for Paramount and Warner Bros., and a five-member independent board overseeing editorial standards at CBS News and CNN. A breach of the cable term could lead to an order to divest channels such as BET, VH1 and Comedy Central, though CNN and New Line Cinema are not among the divestiture options. 1

Mixed · 2The subscribers argue the settlement's safeguards, including a bar on selling or closing the Paramount or Warner Bros. lots and an editorial-independence board, show how much integration closing would cause but "do not preserve competition between Paramount and Warner Bros." They also say the judge denied relief "on a premise the record directly contradicts" and that the public interest favors freezing the deal. 2 1 Centre · 1The plaintiffs say the order sought is narrow and does not decide final antitrust liability, but would preserve the Court's ability to decide the legal questions before the 6 October closing changes the competitive structure. 2 Mixed · 2Both outlets treat the bid as a longshot; the Hollywood Reporter notes it would succeed only if the Supreme Court immediately ordered Paramount not to close. Separately, David Ellison announced the combined company's leadership, with himself as chairman and CEO and Ynon Keiz as co-CEO. 1 2