From PC Mag: A federal judge has paused Paramount Skydance’s acquisition of Warner Bros. Discovery after a coalition of 12 states challenged the merger over possible violations of antitrust laws.
The lawsuit, filed last week, argues that a merger between two of Hollywood’s five biggest studios would reduce competition and lead to price hikes, lower quality, and less content for viewers of film and television.
The states, led by California Attorney General Rob Bonta, sought an injunction and a temporary restraining order (TRO) to pause the deal while the lawsuit proceeds. As Variety reports, Judge Araceli Martinez-Olguin with the US District Court for the Northern District of California heard arguments on Friday and granted a 14-day restraining order blocking Paramount and WBD from closing the deal.
The merger could give the resulting company up to 27% of the theatrical distribution market, and by that figure alone, “the Court is persuaded that it can presume the proposed merger is likely to violate antitrust laws,” Judge Martinez-Olguin writes in her order, adding that the absence of a TRO would result in “irreparable harm.”
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