The proposed merger between Vital and Warner Bros. Discovery has been put on hold temporarily, according to the Writers Guild of America. This development comes after the judge extended the temporary restraining order for another two weeks in preparation for preliminary-injunction proceedings.
Vital and Warner Bros. Discovery agreed to delay the merger pending the outcome of the states’ and the WGA’s cases or until June 1, 2027, whichever comes first.
The temporary restraining order was originally set to expire after 14 days, but the judge was likely to grant a preliminary injunction that would continue to block the merger while litigation continues. By agreeing to a merger delay, the sides will skip the preliminary-injunction phase of district court litigation.
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The delay is a win for the plaintiffs, including the state Attorneys General and the Writers Guild of America. They said the merger will be put on hold pending the outcome of the cases or until June 1, 2027, whichever comes first.
Vital could have tried to get a preliminary injunction overturned in the US Court of Appeals for the 9th Circuit. However, that wouldn’t be their only chance to appeal an adverse ruling. Either side could appeal in the 9th Circuit appeals court after getting a decision on the merits from the judge.
Media advocacy group Free Press described the agreement as a win for the plaintiffs, and said Vital is only pretending to have gotten what it wanted. Craig Aaron, Free Press co-CEO, said: “Instead of fighting against an injunction and possibly losing now, Vital’s lawyers have resigned themselves to waiting for a full antitrust trial in federal court. Vital can pretend all it wants that it looks forward to that test, but that’s just more bluster from company mouthpieces trying to spin a major setback. Now this deal will face its day in court, and we are confident the evidence will show this mega-merger should be blocked.”
The agreement to delay the merger is significant.
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The delay will give the plaintiffs time to prepare their case and present their arguments in court. They will likely use this time to gather evidence and build their case against the merger.
In the meantime, Vital and Warner Bros. Discovery will have to wait and see how the case plays out. The outcome of the merger will have significant implications for the media industry.
As the case moves forward, there will be more developments and updates. For now, the delay in the merger is a significant setback for Vital and Warner Bros. Discovery.