Paramount’s owners had aimed to finalize a deal to purchase Hollywood competitor Warner Bros. this week. However, on Monday, U.S. District Judge Araceli Martínez-Olguín stepped in with a temporary restraining order that pauses the acquisition.
The ruling came in response to a significant antitrust lawsuit brought by a coalition of a dozen states. The attorneys general from these states argue that Paramount’s purchase of Warner Bros. would diminish competition. They express concern that such a merger could adversely affect filmgoers, TV and news consumers, and the creators of entertainment and content.
The proposed $111 billion deal would merge the assets of Paramount and Warner Bros., including movie and television studios, streaming platforms Paramount+ and HBO Max, the nation’s leading broadcast channel CBS, 50 cable networks, CNN, and CBS News.
California Attorney General Rob Bonta issued a statement, pronouncing the restraining order as “a critical first win in our case to ensure this megamerger never sees the light of day.” The case remains in development and updates will be provided as they become available.
NPR’s Mandalit Del Barco contributed to this report.