Federal judge pauses Paramount and Warner Bros merger
The takeover of Warner Bros by Paramount Skydance has been temporarily paused by a federal judge after requests were made by 12 state attorneys general.
District Judge Araceli Martínez-Olguín granted a temporary restraining order, which has stopped Paramount from being able to complete what would be a $110 billion deal uniting the two movie studios along with different news organisations and streaming platforms.
The restraining order will be in place for two weeks, with Martínez-Olguín organising a hearing for August 3rd, where they welcome the state’s argument for a preliminary injunction which would essentially freeze the deal while the rest of the legislative process is carried out.
The plaintiffs who have put forward the motion for the injunction have warned that allowing the merger to go ahead would completely “extinguish competition” in Hollywood, leading to a severe drop in quality.
Rob Bonta, the attorney general leading the complaint, said: “The unlawful merger of these two entertainment behemoths would lead to higher prices, lower quality, and less content for film and television, harming movie theaters, basic cable distributors, and ultimately, audiences on every sofa and movie theater seat in the U.S.”
Paramount has pushed back against these claims, saying that the arguments put forward are wrong, and caled it “one of the weakest merger challenges in modern antitrust history.”
They added: “We will vigorously defend the transaction and demonstrate that this challenge is inconsistent with sound competition policy and the competitive realities of the media marketplace.”
Bonta and his fellow attorney generals aren’t the only people who have warned against potential negative repercussions following this merger, as people in the film industry, as well as New York Mayor Zohran Mamdani, have all voiced their concerns about what might happen if the multi-billion dollar deal goes through.
Mamdani said: “This merger is bad for New Yorkers three times over. Thousands of jobs at risk here in the city. Streaming bills going up as competition disappears. And two of America’s most powerful media companies under one roof, deciding what you watch and what you hear.”
Never Miss A Scene
The Far Out Film Newsletter
All the latest film news from the independent voice of culture.
Straight to your inbox.