A federal judge in Northern California granted a temporary restraining order halting the merger of Paramount Skydance and Warner Bros. Discovery until an August hearing on the blockbuster consolidation.
Biden-appointed U.S. District Judge Araceli Martinez-Olguin granted the TRO on Monday, with California Attorney General Rob Bonta (D) declaring the order a win for himself and the 11 other state attorneys general who sued to block the merger.
“My office and attorneys general nationwide have secured an emergency order blocking the unlawful merger of Warner Bros. and Paramount. This is a critical first win in our case to ensure this megamerger never sees the light of day,” Bonta said in a statement on Monday.
Martinez-Olguin’s ruling pauses the merger for exactly two weeks until the hearing on the attorneys’ general preliminary injunction motion on Aug. 3. A preliminary injunction would pause the merger for the duration of the lawsuit.
Bonta filed the lawsuit to block the $110 billion merger on July 13, arguing that the deal would “extinguish competition between Paramount and Warner Bros. and inflict substantial harm on movie theatres, basic cable distributors, and, ultimately, audiences nationwide.”
The state attorneys general argue that the merger violates Section 7 of the Clayton Act, which bans mergers and acquisitions that “substantially lessen competition” within an industry or create a monopoly.
Martinez-Olguin wrote in her order that the court “finds the public interest favors” the plaintiffs’ request for a TRO because the states “raise serious questions on the merits of their Clayton Act claim and because the balance of equities and public interest tip sharply in favor of the Plaintiff States.”
A spokesperson for Paramount told the Washington Examiner that the order simply preserves the status quo as the court deliberates on the litigation, saying the company is “grateful for the Court’s swift order.”
“We are confident the evidence will demonstrate that the State AGs’ antitrust arguments are without merit as their alleged markets and claims of anticompetitive effects are without any basis in modern market realities,” the Paramount spokesperson said. “This merger is lawful, pro-competitive, and will benefit consumers, creators, workers, and the entertainment industry.”
“We will continue to vigorously defend the transaction and will look forward to the hearings on the substance of the State AGs’ action,” the spokesperson continued.
PARAMOUNT CASTIGATES ROB BONTA FOR PROPOSING CONCESSIONS IN WBD MERGER LAWSUIT
The Trump administration’s Justice Department and several other countries have already granted regulatory approval for the merger, but the European Union and the United Kingdom have not yet cleared the deal.
The merger has been heavily scrutinized on the Left, as Democrats have highlighted that Paramount CEO David Ellison is the son of Larry Ellison, a close ally and friend of President Donald Trump. Warner Bros. Discovery owns CNN, which the president is famously not fond of and routinely ridicules as “fake news.”
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[ H/T Washington Examiner ]
