Federal judge pauses Paramount-Warner Bros. merger after state lawsuit
5 verified4 unconfirmed1 contested
A federal judge has temporarily blocked Paramount’s planned acquisition of Warner Bros. Discovery after a dozen state attorneys general sued to stop the deal on antitrust grounds. U.S. District Judge Araceli Martínez-Olguín on Monday granted a temporary restraining order, pausing the merger while the lawsuit proceeds. The states argue the combination would reduce competition in entertainment, television, and news, harming viewers and content creators. California Attorney General Rob Bonta called the ruling “a critical first win” in the effort to prevent what he described as a megamerger that “never sees the light of day.” The deal, valued at roughly $110 billion to $111 billion, would unite major studios, streaming services, broadcast networks, and cable channels. A hearing on a preliminary injunction is scheduled for early August.
What’s verified
A federal judge granted a temporary restraining order to pause the merger of Paramount and Warner Bros. Discovery.
The lawsuit was filed by a dozen state attorneys general alleging antitrust violations.
The states contend the deal would reduce competition and harm consumers and content creators.
California Attorney General Rob Bonta stated, “This is a critical first win in our case to ensure this megamerger never sees the light of day.”
The merger is valued at approximately $110 billion to $111 billion.
Where accounts differ
One source reports the deal value as $111 billion, while another reports it as $110 billion.
Not yet confirmed
One source reports a 14-day restraining order with a preliminary injunction hearing set for August 3.
One source states that if the deal has not closed by September 30, Paramount would owe Warner Bros. investors millions of dollars per day in “ticking fees.”
One source mentions a CNN spin-off plan that the states said would not resolve the lawsuit.
One source includes statements from California AG Rob Bonta about the ticking fee and about Paramount’s potential relocation threats.
Key figures
U.S. District Judge Araceli Martínez-Olguín
California Attorney General Rob Bonta
