Paramount Subscribers Petition Supreme Court to Stop Warner Bros. Discovery Merger

Paramount subscribers have filed an emergency motion with Justice Elena Kagan requesting the Supreme Court halt the company's $110 billion merger with Warner Bros. Discovery, which is scheduled to close on Tuesday. The plaintiffs argue that agreed-upon settlement terms fail to preserve adequate competition in streaming, theatrical distribution, and news services in violation of antitrust law. A lower court judge previously declined to issue a temporary restraining order, but the subscribers claim the court's reasoning contradicts the factual record.

The merger settlement includes specific operational requirements designed to address antitrust concerns. Paramount and Warner Bros. must maintain separate negotiations for basic cable channels and commit to releasing a minimum number of theatrical films annually—30 per year for the first two years, increasing to 32 thereafter. Additionally, an independent board of five members will oversee editorial standards at CBS News and CNN to prevent editorial conflicts. Violations could trigger forced divestitures of certain cable networks, though major assets like CNN and New Line Cinema are excluded from potential penalties.

The subscribers contend that the lower court made a procedural error by claiming insufficient evidence was presented, when relevant documents and declarations were already part of the court record. Their emergency petition argues this mistake undermines the judge's decision to reject a temporary restraining order, and they're asking the Supreme Court to pause the deal pending full consideration of their antitrust claims.