Federal judge delays Paramount-Warner deal for two weeks
The merger between Paramount and Warner Bros. Discovery, which is valued at USD 81 billion, was ordered to be put on hold by a federal judge on Monday for a period of at least two weeks. This will give the states that are fighting the agreement additional time to see their case through the legal system.
With the allegation that such a merger would “extinguish competition” in Hollywood and lead to fewer choices for consumers, notably moviegoers and cable customers across the United States, twelve states filed a lawsuit this week to prevent Paramount from completing its planned acquisition of Warner. The lawsuit was led by Governor Jerry Brown of California. Warner and Paramount were put under pressure by the highest-ranking prosecutors in the states to delay the completion of the sale until after the court had had sufficient time to “fully evaluate” their accusations.
Additionally, when the corporations refused, they submitted a request for a temporary restraining order, which District Judge Araceli Martinez-Olguin granted on Monday. This paves the way for the possibility of a preliminary injunction, which is something that the states are also looking for in order to effectively make the merger impossible.
