Daijiworld Media Network – Washington

Washington, Jul 21: A US federal judge on Monday temporarily halted the proposed $81 billion merger between Paramount Pictures and Warner Bros. Discovery, granting states challenging the deal additional time to pursue their antitrust case.

District Judge Araceli Martínez-Olguín ordered the companies not to complete the merger for at least two weeks after a coalition of 12 states, led by California, sought emergency court intervention.

The states filed a lawsuit last week to block Paramount's proposed acquisition of Warner Bros. Discovery, arguing that the merger would significantly reduce competition in the entertainment industry.

According to the lawsuit, the combination would "extinguish competition" in Hollywood, potentially resulting in fewer choices for consumers, particularly moviegoers and cable television subscribers across the United States.

The attorneys general representing the states had urged the two companies to refrain from finalising the transaction until the court had fully examined the legal challenge. After Paramount and Warner declined to delay the merger voluntarily, the states sought a temporary restraining order.

Judge Martínez-Olguín granted the request, preventing the companies from closing the transaction while the court considers the case.

The temporary order also paves the way for the court to consider the states' request for a preliminary injunction, which, if granted, could prevent the merger from proceeding until the legal challenge is resolved.

The states contend that the proposed merger would concentrate excessive market power in the hands of a single media company, harming competition in film production, television programming and cable services.

The merger, valued at $81 billion, is among the largest proposed deals in the global entertainment industry and is expected to face intense regulatory and legal scrutiny before any final approval.