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Judge orders Paramount and Warner Bros Discovery to pause $110B merger
The temporary ban keeps the companies from closing for 14 days and sets an Aug. 3 hearing on whether to bar the deal pending a final ruling.
A federal judge in California ordered Paramount Skydance and Warner Bros Discovery to temporarily pause their merger while a lawsuit brought by multiple US states challenging the deal advances, according to SCMP Economy.
The court prohibits closing of the US$110 billion transaction for 14 days, until another hearing on August 3 on a request for a preliminary injunction that would block the companies from completing the deal before a final decision is reached.
SCMP Economy reports that the states said the deal raises serious anticompetitive concerns, and the judge ruled that the balance of equities and public interest favors the plaintiffs.
California Attorney General Rob Bonta called the temporary restraining order a critical first win, while a Paramount spokesperson said the company is grateful for the court’s swift order and believes it preserves the status quo while antitrust issues are considered, SCMP Economy said.