by Kevin Killough
A federal judge on Monday ordered Paramount and Warner Bros. Discovery to pause their $81 billion merger for at least two weeks.
This will allow states that are challenging the deal more time for their case to make their way through court, the Associated Press reported.
Twelve states, led by California, sued to block the merger, alleging that it would “extinguish competition” in Hollywood and reduce choices for consumers.
The states’ top prosecutors asked the two companies not to close their deal until courts could fully evaluate the states’ complaints. When the companies refused, the states filed for a temporary restraining order, which District Judge Araceli Martínez-Olguín granted on Monday.
California Attorney General Rob Bonta said in a statement that the decision is a “critical first win” in the states’ case.
“History tells the tale of what happens when a few people have great power over markets that are central to Americans’ lives: fewer opportunities for more people, worse products and services for all people. With our lawsuit, we’re fighting for a free and fair market and a thriving film and television industry that serves creatives and audiences alike. We have a full tank of gas, the law on our side, and look forward to continuing to make our case,” Bonta added.
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Kevin Killough is a reporter for Just the News. Zachery Schmidt is the digital editor of The Star News Network and contributed to this story.
