Archive · 18 Jul 2026
Paramount, AGs Clash Over Blockbuster Definition in Merger Hearing
Paramount and a group of State Attorneys General had a court hearing about Paramount's merger with Warner Bros.
Discovery.
They argued about what makes a movie a blockbuster and how quickly the court should decide.
Paramount said the definition is changing and pointed to the success of a low-budget movie called 'Obsession.'
The AGs said only big studios can make consistent blockbusters.
They also disagreed about the timeline for the court's decision, with Paramount wanting a quick ruling to avoid extra payments and the AGs wanting more time to gather information.
The judge will decide by July 22.
Paramount and State AGs clashed in court over the definition of a blockbuster and the timeline for the antitrust challenge to Paramount's merger with Warner Bros. Discovery.
Paramount argued that the definition of a blockbuster is evolving, citing the success of 'Obsession,' a low-budget film that grossed $430 million worldwide.
The AGs argued that only the five major Hollywood studios can consistently produce blockbuster films and that the merger would harm competition.
Paramount requested an expedited ruling to avoid a ticking fee of $7.2 million per day starting October 1, while the AGs argued for a more thorough process.
The judge will issue a written ruling before July 22, the earliest the merger could theoretically close.
- Who
- Paramount and a dozen State Attorneys General led by California's Rob Bonta
- What
- A court hearing over the definition of a blockbuster and the timeline for the antitrust challenge to Paramount's merger with Warner Bros. Discovery
- When
- Friday (specific date not mentioned)
- Where
- Northern District of California courtroom in Oakland County
- Why
- To determine the impact of the merger on competition in the entertainment industry and the appropriate timeline for the legal process
Paramount's View
State AGs' View
Definition of Blockbuster
Paramount's View
Paramount argues that the definition of a blockbuster is evolving, citing the success of low-budget films like 'Obsession' and competition from streamers and independent studios.
State AGs' View
The AGs argue that only the five major Hollywood studios have the financial capability to consistently produce, market, and distribute blockbuster films.
Impact on Competition
Paramount's View
Paramount believes the merger will not significantly harm competition due to the changing landscape of the entertainment industry.
State AGs' View
The AGs claim the merger would reduce competition in blockbuster films, wide release movies, and cable networks, leading to higher ticket prices and harming consumers.
Ticking Fee and Timeline
Paramount's View
Paramount requests an expedited ruling to avoid the ticking fee, which would result in additional payments to WBD shareholders starting October 1.
State AGs' View
The AGs argue that the expedited timeline is unfair and unprecedented, and that a thorough process should be followed to hear from competitors and customers.
- Ticking Fee
- $7.2 million per day or $650 million every three months starting October 1
- Merger Value
- $110 billion
- Obsession's Budget
- $750,000
- Obsession's Worldwide Gross
- $430 million
- Amazon's Theatrical Releases
- 15 films per year
- Judge's Ruling Deadline
- Before July 22