Court Temporarily Halts Paramount's Takeover of Warner Bros.

A US federal judge issued a 14-day restraining order, temporarily pausing the USD 110 billion merger between Paramount Skydance Corp. and Warner Bros. Discovery, citing serious questions and the public's interest in antitrust enforcement.

Warner Bros, Paramount (Photo/Instagram/@warnerbros,@paramount)

A federal judge has temporarily paused Paramount Skydance Corp.'s USD 110 billion takeover of Warner Bros. Discovery Inc. Judge Araceli Martinez-Olguin on Monday granted a 14-day restraining order after hearing argument from both sides on Friday morning. Paramount had previously agreed not to close the transaction before July 22, as per Variety.

Court Cites 'Serious Questions' in Ruling

"Plaintiff States' showing at least demonstrates that serious questions going to the merits remain, weighing in favor of preliminary injunctive relief," the judge wrote, adding that Paramount has acknowledged it will not be harmed by the delay until the end of September. "Paramount and Warner Bros. will continue to operate as separate, viable companies competing in the marketplace while they wait for the Court to adjudicate this case. The balance of equities, combined with the public's vital interest in antitrust enforcement, therefore tips sharply in favor of the requested injunctive relief."

Legal Battle and Deadlines Ahead

The 12-state coalition, led by California, brought a motion for the temporary restraining order. The states are also seeking a preliminary injunction, which would block the merger until the judge rules on the merits of the states' lawsuit. The 14-day restraining order could be extended to as long as 28 days.

Martinez-Olguin also set a hearing on the preliminary injunction for August 3, though that date, too, could be delayed if the parties agree, Variety reported. Paramount has pushed for a hearing on the injunction with live witnesses. The company hopes to get a ruling on the injunction by early September. If the deal is not closed by September 30, Paramount will start to owe millions of dollars a day to Warner Bros. investors. (ANI)

(Except for the headline, this story has not been edited by Asianet Newsable English staff and is published from a syndicated feed.)