Federal judge issues 14-day TRO blocking $110 bln Paramount-Warner Bros Discovery merger

Published Jul 22, 09:15 AM UTC

A federal judge issued a 14-day temporary restraining order blocking the proposed $110 billion merger between Paramount Pictures and Warner Bros. Discovery, siding with 12 states suing to stop the deal. The ruling, by Judge Araceli Martínez-Olguín, indicates the states are likely to succeed on their claim that the merger violates Section 7 of the Clayton Act by creating excessive market concentration in theatrical and cable distribution. At a mini-trial hearing, states' lawyer James Weingarten argued the merger would give the combined entity increased bargaining power over theaters and cable companies, leading to higher consumer prices. Paramount's lawyer Jeffrey Kessler countered that streaming competition and cord-cutting mitigate antitrust concerns, but the judge appeared skeptical. A preliminary injunction hearing is scheduled for August 3, which could block the merger for months. The article notes growing pressure on Paramount to abandon a deal that is losing traction.