Paramount is pushing for a November trial on Warner Bros.; state AGs want April

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Paramount Skydance (PSKY [https://seekingalpha.com/symbol/PSKY]) is seeking a trial in November on the state attorney general's efforts to block its planned $110 billion purchase of Warner Bros. Discovery (WBD [https://seekingalpha.com/symbol/WBD]). The state AGs want a hearing in April.

Paramount Skydance (PSKY [https://seekingalpha.com/symbol/PSKY]) outlined a schedule for a trial before US District Judge Araceli Martínez-Olguín to begin on Nov. 4, while the states are seeking a hearing on April 5, according to a court filing [https://www.courtlistener.com/docket/73606877/193/the-state-of-california-v-paramount-skydance-corporation/]on Friday.

California led a group of 12 states in a lawsuit to challenge the mega media [https://seekingalpha.com/news/4613234-multiple-states-are-expected-to-file-suit-against-warner-brosparamount-today---cnbc#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews] deal earlier this month. Paramount (PSKY [https://seekingalpha.com/symbol/PSKY]) last Friday announced it will delay its acquisition [https://seekingalpha.com/news/4618362-paramount-skydance-agrees-to-delay-warner-bros-merger-until-june-2027#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews]of Warner Bros. (WBD [https://seekingalpha.com/symbol/WBD]) until five days after the court issues a final decision on the merger, or until June 2027, whichever comes first.

The delay is expected to cause a ticking fee in which Paramount Skydance (PSKY [https://seekingalpha.com/symbol/PSKY]) must pay Warner Bros. (WBD [https://seekingalpha.com/symbol/WBD]) shareholders $0.25 per share, or $650M per quarter.

Paramount said in a statement to Bloomberg that the states’ request is “nothing more than a stonewalling tactic” and that a November trial date is “more than sufficient to give both sides the time they need to conduct discovery, gather evidence, and prepare for trial.”_ _

Shares of Warner Bros. Discovery (WBD [https://seekingalpha.com/symbol/WBD]) climbed 3.3% on Friday after a WSJ report [https://seekingalpha.com/news/4622911-warner-bros-gains-on-report-newsom-concered-about-ag-suit-over-paramount-deal] that California Gov. Gavin Newsom is concerned about the state's antitrust lawsuit to block the mega media deal. Newsom is concerned that if the deal is blocked, it could have implications for employment in the state.

Newsom's office is encouraging California Attorney General Rob Bonta's office to find a settlement outside of court, according to the report.

MORE ON WARNER BROS. DISCOVERY, PARAMOUNT SKYDANCE CORPORATION

* Warner Bros. Discovery And Paramount Skydance: The Risks Have Not Changed But The Potential Return Has Improved [https://seekingalpha.com/article/4925159-warner-bros-discovery-paramount-skydance-risks-not-changed-potential-return-improved]
* Paramount Skydance Corporation (PSKY) Shareholder/Analyst Call Prepared Remarks Transcript [https://seekingalpha.com/article/4923863-paramount-skydance-corporation-psky-shareholder-analyst-call-prepared-remarks-transcript]
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* Warner Bros. gains on report Newsom concerned about AG suit over Paramount deal [https://seekingalpha.com/news/4622911-warner-bros-gains-on-report-newsom-concered-about-ag-suit-over-paramount-deal]
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