San Francisco judge pauses $81 billion Paramount-Warner merger | JQJO

SAN FRANCISCO — A federal judge on Monday ordered Paramount and Warner Bros. Discovery to halt their proposed $81 billion merger for at least two weeks, granting a temporary restraining order requested by 12 states led by California. The states sued last week to block Paramount’s planned buyout of Warner, arguing the combination would extinguish competition in Hollywood and leave U.S. moviegoers and cable customers with fewer choices. District Judge Araceli Martínez-Olguín of the Northern District of California said the pause, which prevents the companies from closing the transaction, can be extended for up to 28 days while the court evaluates the antitrust claims.

California Attorney General Rob Bonta called the order a critical first win and warned that allowing a few companies to gain great power over key entertainment markets would lead to fewer opportunities and worse products and services. The states acted after urging the companies not to finalize the deal until a court could review their case, and then seeking the restraining order when that request went unanswered. The merger would unite two of the five remaining legacy Hollywood studios and a broad range of TV networks, streaming services and news outlets, including HBO Max, CNN, CBS, the Paramount+ platform and franchises such as “Harry Potter” and “Top Gun.” Paramount, which has pledged to vigorously defend the acquisition, did not immediately comment on the ruling.