A federal judge on Monday temporarily blocked the proposed merger of Paramount and Warner Bros. Discovery.
US District Judge Araceli Martínez-Olguín issued a temporary restraining order for 14 days, preventing the companies from completing the $110 billion deal.
Lawsuit against the merger
A lawsuit filed by the state of California and a coalition of other states alleges that the merger will reduce competition by combining two major Hollywood studios along with some of the country’s largest television and streaming platforms.
California Attorney General Rob Bonta stated: “History shows what happens when a few people gain great power over markets that are central to Americans’ lives: fewer opportunities for more people, worse products and services for everyone. With this lawsuit, we are fighting for a free and fair market, as well as a thriving film and television industry that serves both creators and viewers. We have all the necessary resources, the law on our side, and we look forward to continuing the case.”
Paramount, for its part, has vowed to contest the lawsuit, asserting that the merger will not significantly reduce competition.
Source: Denver7
