A federal judge on Monday temporarily stopped Paramount from completing its $111 billion purchase of Warner Bros. Discovery while she considers a lawsuit that argues the deal violates antitrust laws, a disruption to one of the biggest media deals in history.
Judge Araceli Martínez-Olguín of the U.S. District Court for the Northern District of California issued a temporary restraining order that was requested by 12 states that have sued to block the deal. The restraining order lasts 14 days.
“This is a critical first win in our case to ensure this megamerger never sees the light of day,” California’s attorney general, Rob Bonta, a Democrat who is leading the states’ lawsuit, said in a statement. A spokeswoman for Paramount did not immediately respond to a request for comment.
Paramount reached an agreement to buy Warner Bros. Discovery this year in what it said was an effort to compete with streaming giants like Netflix and Amazon. The merger would unite under one roof two major movie studios, the streaming services HBO Max and Paramount+ and networks including CBS and CNN.
The group of states, which includes California, New York and Colorado, said in seeking the restraining order that Paramount could close the deal as soon as July 22. The states have argued that the deal would give Paramount outsized dominance over the production of tentpole films, costly would-be blockbusters that sustain studio revenues, and basic cable channels.
Paramount argued at a court hearing before Judge Martínez-Olguín last week that the states’ request for a temporary restraining order was unnecessary and that it planned to defend its deal in court.
This is a developing story. Check back for updates.
Benjamin Mullin and Lauren Hirsch contributed reporting.
Seamus Hughes contributed research.
