Paramount’s owners had hoped to seal a deal to buy Hollywood rival Warner Bros. this week. But on Monday, U.S. District Judge Araceli Martínez-Olguín granted a temporary restraining order pausing the acquisition.
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SOPA Images/SOPA Images/LightRocket via Gett/LightRocket
Paramount’s owners were planning to have secured firm control of Hollywood rival Warner Bros. Discovery by the end of this week.
A federal judge’s ruling Monday in response to a major antitrust lawsuit filed by a dozen states has ground the process to a halt.
On Monday, U.S. District Judge Araceli Martínez-Olguín granted a temporary restraining order to the states to pause the acquisition. The attorneys general allege Paramount’s purchase of Warner Bros. would reduce competition, hurting filmgoers, TV and news consumers and especially those who create the entertainment and other content they rely on.
The $111 billion deal would unite Paramount and Warner Bros. movie and television studios, streamers Paramount+ and HBO Max, the nation’s most-watched broadcast outlet (CBS) with 50 cable channels, and CNN and CBS News under the same roof.
“This is a critical first win in our case to ensure this megamerger never sees the light of day,” California Attorney General Rob Bonta said in a statement issued to the press.
This is a developing story and will be updated.
ReadNOW’s Mandalit Del Barco contributed to this story.