By Jody Godoy and Dawn Chmielewski
July 20 (Reuters) – A coalition of states, led by California, obtained a temporary restraining order on Monday to pause Paramount’s proposed $110 billion acquisition of Warner Bros. Discovery, citing risks of significant harm to market competition.
The states, including 12 total jurisdictions, filed suit on July 13, arguing the merger would consolidate media power and enable the combined entity to unilaterally raise prices in the film and television sectors.
Plaintiffs contended that closing the deal would immediately trigger layoffs and the exchange of confidential operational data between Paramount and Warner Bros., actions that could be difficult to reverse if the merger is later deemed illegal.
The lawsuit, filed in Oakland federal court, poses a challenge to Paramount CEO David Ellison’s strategy to reshape the company into a dominant competitor to streaming giants Netflix and Disney.
Paramount countered that the states’ claims misinterpret established antitrust principles, asserting that delays would disproportionately impact entertainment workers already navigating a turbulent industry landscape.
(Reporting by Jody Godoy in New York and Dawn Chmielewski in Los Angeles)