Judge pauses Paramount-Warner merger after 12-state challenge
7 reported
A federal judge on Monday ordered Paramount and Warner Bros Discovery to halt their $81bn merger for at least two weeks, granting a temporary restraining order sought by 12 states that are challenging the deal. The states, led by California, sued last week to block Paramount’s pending buyout of Warner, alleging the combination would “extinguish competition” in Hollywood and reduce choices for consumers, especially moviegoers and cable customers. The states’ top prosecutors had asked Warner and Paramount not to close the transaction until a court could “fully evaluate” their claims, and when the companies refused, they filed for the restraining order. District Judge Araceli Martínez-Olguín granted the order on Monday, opening the door to a potential preliminary injunction that the states are also seeking. California Attorney General Rob Bonta called the order “a critical first win” in the case. Paramount did not immediately comment on Monday’s order but has vowed to “vigorously defend” its Warner acquisition, previously calling the states’ complaint “wrong on both the facts and the law.” The pause halts the deal for at least 14 days, with a hearing on the states’ preliminary injunction motion set for August 3.
What’s reported
A federal judge ordered Paramount and Warner Bros Discovery to halt their $81bn merger for at least two weeks.
Twelve states, led by California, sued to block the merger, alleging it would “extinguish competition” in Hollywood.
The states filed for a temporary restraining order after the companies refused to delay the transaction voluntarily.
District Judge Araceli Martínez-Olguín granted the temporary restraining order on Monday.
California Attorney General Rob Bonta called the order “a critical first win” in the case.
Paramount has vowed to “vigorously defend” the acquisition and previously called the states’ complaint “wrong on both the facts and the law.”
The pause lasts at least 14 days, with a hearing on the states’ preliminary injunction motion set for August 3.
Key figures
District Judge Araceli Martínez-Olguín
Rob Bonta, California attorney general
Sources: The Guardian
