A US court has paused the merger between Paramount and Warner Bros..…
A US court has paused the merger between Paramount and Warner Bros.. A week ago, California authorities and 10 other states filed a lawsuit to block the deal, claiming it would harm competition in the movie exhibition market and cable channel content licensing.
Consensus
- A U.S. federal judge in Oakland, California, temporarily blocked the merger between Paramount Skydance and Warner Bros. Discovery for two weeks.
- The merger was valued at $110 billion.
- The decision followed a lawsuit filed by 12 state attorneys general, primarily from states with Democratic leadership.
- The court's temporary injunction may be extended up to 28 days.
- A hearing on whether to extend the freeze is scheduled for August 3.
- Paramount Skydance and Warner Bros. Discovery were expected to close the deal by July 22.
- Both companies' stock prices declined by 1.4% following the announcement.
Points of divergence
- The merger was agreed upon in early 2026, surpassing Netflix's bid. — meduza
- Paramount argues that new market entrants like A24 and Amazon MGM make the film industry more competitive than alleged by states. — fontanka
- The judge rejected Paramount's argument that efficiency gains in streaming would offset harm to competition in traditional markets. — fontanka
- Paramount expects a decision by early September and faces daily penalties of $7 million if the deal is not completed by September 30. — fontanka
- The merger was agreed upon in late February, with Warner Bros. Discovery valued at $81 billion before debt. — vedomosti
- Warner Bros. Discovery owns HBO, HBO Max, CNN, TNT Sports, and Discovery channels. — interfax
- The merger was initially approved by the U.S. Department of Justice before staff could formally present objections. — vedomosti
- Some DOJ employees recommended challenging the deal due to antitrust concerns, but leadership changed its stance after a meeting with David Ellison. — vedomosti
Coverage (8 sources)
- Federal court in the US pauses merger of Paramount and Warner Bros. — Meduza
- US Court Halts Merger of Paramount and Warner Bros. — Фонтанка
- Federal court has suspended the merger of Paramount and Warner Bros. Discovery — Коммерсантъ
- Paramount and Warner Bros. Discovery merger suspended — Вести
- Court pauses merger of Paramount and Warner Bros. Discovery for two weeks — Интерфакс
- Representatives of several states plan to block Paramount's acquisition of WBD through the courts — Интерфакс
- WSJ Reveals Disagreements in US Department of Justice over Paramount and WBD Deal — Ведомости
- US Department of Justice unexpectedly approves Paramount deal with WBD for its employees who were reviewing it — Интерфакс