Federal Judge Araceli Martínez-Olguín has dismissed a consumer antitrust lawsuit challenging the proposed merger of Paramount and Warner Bros. Discovery, ruling that the plaintiffs failed to establish standing. The judge said the group may file a revised complaint.
The consumer case is separate from a lawsuit brought by 12 states that has delayed the closing of David Ellison's $111 billion deal until a trial in March. Staff at both studios remain in a holding pattern, with some projects at risk and priorities restricted by the deal's terms.
Paramount also reported mixed quarterly earnings, with net earnings falling to $41 million. The company said it recorded its best quarter ever for retention on its Paramount+ streaming service.
In separate commentary, Chris Wallace, the former Fox and CNN anchor who now advises a firm with a large stake in Paramount, accused state officials of playing politics with the law to block the merger. He wrote that government should not use its powers to determine who owns a news platform or to control how that outlet reports the news.