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Judge pauses Paramount and Warner merger for at least two weeks
The halt follows a lawsuit by 12 states led by California, which argue the deal would reduce competition and options for consumers.
A federal judge ordered Paramount and Warner Bros Discovery to pause their $81bn merger for at least two weeks, giving states challenging the transaction additional time in court, according to the Guardian Business.
Twelve states led by California sued last week to block Paramount’s pending buyout of Warner, arguing the combination would “extinguish competition” in Hollywood and leave consumers with fewer choices, including moviegoers and cable customers across the US.
The states sought a temporary restraining order after the companies declined to delay closing, and district judge Araceli Martínez-Olguín granted that request on Monday. The court action also sets up the states’ push for a preliminary injunction that could effectively block the deal.
The proposed tie-up would combine two of the five last legacy studios in Hollywood and bring together assets including Warner’s HBO Max and CNN with Paramount’s CBS, along with films such as Top Gun and the Paramount+ streaming service. California attorney general Rob Bonta called the order a first win in the states’ case and urged that the merger not proceed until claims are fully evaluated.