A federal judge has granted a temporary restraining order to stop Paramount from closing its $110 billion takeover of Warner Bros. Discovery. The order has hit pause on the merger for 14 days.
U.S. District Judge Araceli Martínez-Olguín on Monday issued a temporary restraining order after a coalition of 12 states sued last week claiming the proposed merger violates antitrust laws.
The emergency motion sought to prevent the studio from moving ahead with the merger for 14 days. Martínez-Olguín wrote in the order:
“Because the Plaintiff States raise serious questions on the merits of their Clayton Act claim and because the balance of equities and public interest tip sharply in favor of the Plaintiff States, the Court ultimately finds the public interest favors their requested TRO to stay the merger in the interim.”
The judge added that the state attorneys general presented “compelling evidence” the combined companies “will possess substantial market share in the wide-release theatrical distribution market”. A full copy of the order is up at Deadline.
The order means Paramount and Warner Bros. cannot “close or consummate the Transaction or taking any steps, directly or indirectly, to integrate or consolidate their operations pursuant to the Transaction.”
The judge has also set a hearing date of August 3rd, with the motion due by Thursday.
