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A federal judge made the order Monday Very important and Warner Bros Finding to suspend their integration of $ 81bn for at least two weeks, allowing the countries that are try it more time to see their case in court.
Twelve countries, led by Californiasued to block Paramount’s pending acquisition of Warner last week – saying such a merger would be possible. “to eliminate competition” in Hollywood and it makes for less choices for consumers, especially movie lovers and customers in the US.
The major international plaintiffs have asked Warner and Paramount not to close the deal until the court has had time to “evaluate” their claims. And when the companies refused, they issued a temporary ban – which regional judge Araceli Martínez-Olguín issued on Monday. This opens the door to a preliminary injunction that states also want to block the deal.
“This is the first victory for us to ensure that the megamerger never sees the light of day,” said Rob Bonta, California Attorney General, said following the order on Monday. “History tells what happens when a few control the markets that are at the center of American lives: fewer opportunities for the majority, worse goods and services for all.”
A Warner-Paramount merger would bring together two of the last five studios in Hollywood — as well as more TV, titles that fill streaming libraries and news services. That would include Warner’s HBO Max, fan favorites like Harry Potter and CNN coming under the same roof as Paramount-owned CBS, movies including Top Gun and the Paramount+ streaming service.
Paramount did not immediately respond to the order on Monday. But the company, which was he bought it by Skydance Last year, he vowed to “vigorously defend” his acquisition of Warner. Paramount previously called the international complaint “false in fact and law”, arguing that the merger would strengthen competition against many competitors. And it showed the critical analysis that the alliance has received elsewhere, including from the Trump administration last month.
The temporary restraining order issued on Monday suspends the agreement for at least 14 days, although the suspension can be extended up to 28 days. The court has set August 3 as the date for hearing the government’s proposed ban, although the order can be brought back.