Judge Halts $110B Paramount-Warner Bros. Discovery Merger
A U.S. judge has issued a temporary restraining order blocking the $110 billion merger between Paramount's Skydance and Warner Bros. Discovery. This move comes after a lawsuit was filed over competition concerns.
A U.S. federal judge has temporarily blocked Paramount Skydance's $110 billion acquisition of Warner Bros. Discovery (WBD), issuing a 14-day temporary restraining order. District Judge Araceli Martinez-Olguin granted the order after 12 state attorneys general sued to stop the deal, arguing it would substantially reduce competition.
The states allege the combination of two of Hollywood's five remaining major studios violates Section 7 of the Clayton Antitrust Act. The judge wrote that they presented compelling evidence the merged firm would hold substantial market share in wide-release theatrical distribution, and that the court could presume the deal likely violates antitrust law.
A hearing on the states' request for a preliminary injunction is set for August 3. A preliminary injunction would keep the transaction from closing while the broader antitrust case proceeds, potentially delaying the deal for months and injecting fresh uncertainty into one of the largest media mergers on record.
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