A U.S. district judge has issued a temporary restraining order barring Paramount from completing its $110 billion merger with Warner Bros. Discovery, NBC reports.
U.S. District Judge Araceli Martínez-Olguín of the Northern District of California stayed the merger after attorneys general from 12 states filed suit last week against Paramount Skydance, led by David Ellison. Martínez-Olguín said the restraining order would remain in effect for 14 days and scheduled an Aug. 3 hearing for the states’ motion for a preliminary injunction.
The original lawsuit, filed in the U.S. District Court for the Northern District of California, claimed the merger would create a monopoly and reduce competition in the movie and cable industries. The deal was cleared by the U.S. Department of Justice in June, with that agency saying the merger was unlikely to cause harm or “raise actionable antitrust concerns.”
Under the proposed deal, CNN and CBS News, streaming services HBO Max and Paramount Plus, as well as film and television studios would be consolidated into a single media giant. That makes the lawsuit particularly important because it could reshape the media landscape if the deal is ultimately allowed to move forward. David Ellison’s father, billionaire Oracle founder Larry Ellison, is a high-profile donor and supporter of President Donald Trump.
A representative for Paramount did not immediately respond to a request for comment.
Meanwhile, the European Union is still reviewing the deal and is expected to approve or deny it this month.
Television and home video editor Ty Pendlebury joined CNET Australia in 2006 and moved to New York to be part of CNET in 2011. He tests, reviews and writes about the latest televisions and audio equipment. When he’s not playing Call of Duty, he eats whatever cuisine he can get his hands on. He has a cat named after one of the best TVs ever made. See full bio
