A federal court in California on Monday ordered a temporary suspension of the proposed $110 billion merger between Paramount, Skydance and Warner Bros. Discovery.
The court ruling prevents the two companies from completing the deal for a period of 14 days, until a new hearing scheduled for August 3. At that hearing, the court is expected to consider whether to impose a longer temporary injunction that would block the completion of the transaction until a final decision is reached.
The temporary halt to the merger follows a lawsuit filed on July 13 by California and 11 other states, led by California Attorney General Rob Bonta.
According to the lawsuit, the states argue that Paramount’s acquisition of Warner Bros. Discovery would create an excessively powerful player in the entertainment industry, potentially allowing it to influence prices and limit competition in the film and television markets.
Judge Araceli Martínez-Olguín of the U.S. District Court for the Northern District of California ruled that the states had raised “serious questions regarding the merits” of the case, justifying a temporary pause in the process.
“This is a critical first victory in our case, ensuring that this massive merger does not become a reality,” Rob Bonta said following the decision.
Paramount has not yet issued an official comment on the court’s ruling.
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