US court orders Paramount to pause $110bn Warner Bros takeover

Published Jul 20, 07:02 PM UTC

A US court has ordered Paramount to temporarily halt its $110 billion takeover of Warner Bros after a dozen US states, led by California, launched a legal effort to block the deal on antitrust grounds. District Judge Araceli Martinez-Olguin issued a 14-day temporary restraining order, citing 'compelling evidence' that the merger likely violates competition laws. The court will now consider a preliminary injunction that could prevent the deal from closing until the lawsuit concludes. California Attorney General Rob Bonta called the ruling a 'critical first win.' The merger would reduce the number of major Hollywood studios from five to four and combine major networks including CNN and CBS. Paramount, controlled by Oracle billionaire Larry Ellison, has reportedly threatened to move its headquarters and shift $30bn in spending out of California in response. A Paramount spokesman said the company is confident the antitrust arguments are without merit and will vigorously defend the transaction.