Paramount-Warner Bros. Merger: Supreme Court Asks for State AG Response to Iowa, Montana Objection by Sept. 25

The Supreme Court has granted a Sept. 25 deadline for California Attorney General Rob Bonta, along with 11 other state attorneys general, to respond to objections raised by Iowa and Montana in their lawsuit against the Paramount-Warner Bros. Discovery merger. This deadline was set after the court considered a motion from the plaintiffs for expedited consideration.

In their objection, Iowa and Montana claim that the merger would harm their economies and employees, as well as millions of consumers who watch their content. Republican Attorneys General Brenna Bird and Austin Knudsen, who led the objection, argue that the litigation is politically motivated and should be blocked by the Supreme Court.

They requested a response deadline of Sept. 15 and a potential Oct. 9 conference hearing. While the court is reviewing Iowa and Montana's request for expedited consideration, this does not guarantee that the case will ultimately be taken up. If the case does proceed, oral arguments are expected between Oct. 2026 and before the merger trial begins in March 2027, with a final decision likely months later.

Paramount CEO David Ellison faces a $650 million per quarter penalty, or $7 million per day, until the deal is finalized, starting Oct. 1. He would also be liable for a $7 billion termination fee if the deal fails to close due to regulatory issues. To avoid these penalties, Paramount has agreed to delay the merger closing until five days after the trial outcome or June 1, 2027, whichever arrives first. The merger's final deadline is June 4, 2027.