A federal judge has scheduled a trial for March to determine whether Paramount Global’s $111 billion acquisition of Warner Bros. Discovery violates antitrust laws, potentially delaying one of the largest media mergers in history. U.S. District Judge Araceli Martínez-Olguín set the trial to begin on March 2 and last 12 days, with breaks planned in early and mid-March.

The timing marks a victory for a coalition of 12 states, led in part by California Attorney General Rob Bonta, that sued to block the deal and had requested a trial start date in April. Paramount had pushed for a November trial, labeling the states’ request as a delay tactic.

Under the terms of the agreement, Paramount must pay Warner Bros. Discovery shareholders $650 million for each quarter the merger fails to close after October. The company has also committed not to finalize the transaction until at least June 2027 while the litigation proceeds, adding financial pressure to the already protracted process.

“We respect the court’s decision,” a Paramount spokeswoman said in response to the trial schedule. Meanwhile, a spokeswoman for the California attorney general’s office expressed appreciation for the court’s attention to the matter.

In a letter to investors on Tuesday, David Ellison, major owner of Paramount, emphasized ongoing efforts to strengthen the company ahead of the merger’s closure. The company projects adjusted profits of $3.9 billion this year amid significant cost reductions.

The lawsuit represents one of the final legal challenges to a merger that would consolidate two major film studios, multiple streaming platforms including HBO Max and Paramount+, as well as networks such as CBS and CNN under a single corporate entity. Paramount contends that the merger will bolster its ability to compete with streaming giants like Netflix and Amazon.

Ellison further defended the transaction in an opinion piece this week, arguing that opponents’ objections rely on an outdated view of Hollywood’s landscape. Nonetheless, the coalition of states and other critics maintain that the deal would grant Paramount excessive market power in key sectors, including wide-release films, tentpole blockbusters driving studio revenues, and basic cable channels. The Writers Guild of America has also filed suit, asserting that the merger could negatively impact writers.

The upcoming trial will be crucial in determining whether regulators can successfully block the transaction, which, if allowed to proceed, would reshape the media and entertainment industry significantly.