This follows a multistate lawsuit designed to block the deal.
A federal judge has temporarily halted the controversial merger between Paramount and Warner Bros., according to a report from The New York Times. This restraining order lasts 14 days, but could extend even longer if both parties agree.
The order is to give Judge Araceli Martínez-Olguín and the court time to review a lawsuit filed by 12 states. This coalition argues that the $111 billion merger would violate federal antitrust law and could lead to less competition and higher prices for consumers. The deal could have been concluded as early as July 22, but it will now be delayed for at least two more weeks.
“This is a crucial first victory in our case to ensure this megamerger never sees the light of day,” California Attorney General Rob Bonta said in a statement. Paramount has yet to comment on today’s news, although it argued in court that the restraining order was unnecessary.
Martinez-Olguin also scheduled a hearing regarding the preliminary injunction on August 3. If an injunction is granted, it could permanently block the merger. If the court rules against such an injunction, the agreement will likely be expedited. If a deal isn’t reached by Sept. 30, Paramount will begin owing Warner Bros. investors millions of dollars a day, according to Variety.
Paramount swallows up Warner Bros. means that a single company would control a large number of media properties. This could put HBO Max, CBS, CNN, Showtime, TNT, TBS, Paramount+, DC Studios, Comedy Central, Discovery New Line Cinema, Warner Bros. Pictures and Paramount Pictures under one umbrella.
