Judge pauses $110B Paramount-Warner Bros merger for 14 days

A U.S. district judge on Monday issued a 14-day pause on Paramount Skydance's proposed acquisition of Warner Bros. Discovery (WBD), responding to a lawsuit filed by a coalition of 12 state attorneys general led by California Attorney General Rob Bonta. The lawsuit argues that the merger would harm competition in three areas: wide release theatrical film distribution, top-grossing theatrical distribution, and basic cable licensing.

The coalition claims the deal would harm movie theaters, basic cable distributors, and audiences. “This is a critical first win in our case to ensure this megamerger never sees the light of day,” said Bonta in a statement. “History tells the tale of what happens when a few people have great power over markets that are central to Americans’ lives: fewer opportunities for more people, worse products and services for all people.”

The merger would combine two major film studios and streaming platforms Paramount+ and HBO Max, creating one of the largest portfolios of television networks, including Paramount's CBS and MTV, and WBD's CNN and HBO.

Paramount CEO David Ellison had said in May that the transaction was on track to close by September. The legal roadblock could derail Paramount's efforts to become a major competitor to Netflix. The deal has faced scrutiny from filmmakers, actors, and industry professionals concerned about reduced competition and further consolidation in the U.S. media industry. Paramount and WBD did not immediately respond to requests for comment.