Federal Judge Pauses Paramount-Skydance-Warner Bros Discovery Merger

A federal judge in California on Monday ordered Paramount Skydance and Warner Bros Discovery to temporarily pause their merger while a case brought by multiple states challenging the deal moves forward.

The companies are prohibited from closing their US$110 billion deal for 14 days until another hearing is held on August 3 regarding a preliminary injunction, which would prevent Paramount and Warner Bros from closing the transaction before a final decision is reached.

The states raised “serious questions” about the deal’s potential to be anticompetitive, the judge said in her ruling, adding that “the balance of equities and public interest tip sharply in favour of the Plaintiff States”.

Last week, 12 states led by California sued to block the deal in a direct challenge to the Trump administration’s Justice Department, which approved the merger last month.

In a statement on Monday, California Attorney General Rob Bonta hailed the temporary restraining order as “a critical first win in our case to ensure this mega-merger never sees the light of day”.

A Paramount spokesperson told Variety magazine that the company is “grateful for the Court’s swift order” and underlined that it “preserves the status quo while the Court considers the antitrust issues presented”.