Federal court has suspended the merger of Paramount and Warner Bros.… (слияние · сделка · штат)
Federal court has suspended the merger of Paramount and Warner Bros. Last week, 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, issued a temporary halt to the merger between Paramount Skydance and Warner Bros. Discovery.
- The halt was for a period of 14 days, with potential extension up to 28 days.
- The lawsuit that prompted the decision was filed by California and 11 other states.
- The states argue that the merger would harm competition in cable television and film distribution markets.
- Paramount Skydance and Warner Bros. Discovery had agreed on the terms of the merger in late February.
- The companies had planned to close the deal on July 22, but this date is now uncertain.
- Stock prices of both companies declined by 1.4% as of July 20.
Points of divergence
- The judge ruled that the states convincingly proved the merger would unlawfully reduce competition, violate federal antitrust laws, increase prices, and decrease the number of films and TV shows. — fontanka
- Paramount argues that new players like A24 and Amazon MGM make the film distribution market more competitive than claimed by the states. — fontanka
- Paramount claims the merger will create a stronger competitor to dominant streaming platforms like Netflix and Amazon, thus enhancing competition. — fontanka
- The judge rejected Paramount's argument that efficiency gains in one market could offset harm in another. — fontanka
- If the merger is not completed by September 30, Paramount must pay Warner Bros. Discovery $7 million per day in penalties. — fontanka
- The judge will hold a hearing on August 3 to determine whether to extend the delay until the end of litigation, with final resolution expected in several months. — fontanka
- The merger was initially set to close on July 22, and the states' lawsuit was filed one week before the court's decision. — vesti
- Warner Bros. Discovery is valued at $81 billion without debt, or $110 billion with debt. — interfax
Coverage (6 sources)
- 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
- US Department of Justice unexpectedly approves Paramount deal with WBD for its employees who were reviewing it — Интерфакс