A California federal judge temporarily halted the nearly $111 billion media deal after a 12-state lawsuit, setting up an Aug. 3 hearing as states seek a longer injunction over film and cable competition concerns.
A California federal judge ordered Paramount and Warner Bros. Discovery to halt their proposed merger for at least 14 days after a 12-state lawsuit led by California challenged the transaction on antitrust grounds. The states argue the nearly $111 billion deal would unlawfully concentrate theatrical film distribution, blockbuster releases and basic cable channel licensing, while Paramount says the merger is pro-competitive and necessary to better compete with larger streaming rivals such as Netflix. The temporary restraining order opens the way for an Aug. 3 hearing on a preliminary injunction, with the companies facing added pressure from a Sept. 30 deadline that would trigger about $7 million per day in ticking-fee payments to shareholders if the deal has not closed.