Judge halts $110bn Paramount-Warner Bros merger
A US federal judge has temporarily blocked the proposed merger between Paramount Skydance and Warner Bros Discovery after a lawsuit by 12 states raised competition concerns.
A US federal judge on Monday issued a temporary restraining order blocking the proposed $110bn (£85bn) merger between media giants Paramount Skydance and Warner Bros Discovery for 14 days. The decision follows a lawsuit filed by a coalition of 12 US states, including California and New York, alleging the deal would stifle competition and raise consumer prices.
Prosecutors representing the states argued that merging two major studios would cause "substantial harm" to movie theaters, basic cable distributors, and ultimately audiences nationwide. In response, the companies claimed the states had misread the market and that the merger would improve streaming efficiency.
US District Judge Araceli Martínez-Olguín, who heard legal arguments last week, ruled that the states raised "serious questions" about the deal's impact on movie distribution. She warned that allowing the merger to proceed now would make it "extraordinarily difficult to unscramble the egg" if the court later decided to block it entirely. The judge also pushed back against the companies' arguments, emphasizing that "the public's vital interest in antitrust enforcement" outweighs any temporary delay. She noted that Paramount and Warner Bros "will continue to operate as separate, viable companies competing in the marketplace" while legal proceedings continue.
