U.S. District Judge Araceli Martínez-Olguín of the Northern District of California has put a two-week hold on the DOJ-approved Paramount-Warner merger. The deal is being held up by a California lawsuit seeking to prevent it from happening. The judge was nominated by former President Joe Biden.
Calif. Federal Judge Pauses Paramount-WBD Merger – tctechnology.com
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EXCERPT:
A federal judge has issued a temporary restraining order pausing the $110 billion merger of Paramount and Warner Bros. Discovery as she considers a ruling on a preliminary Injunction in an antitrust case filed by 12 attorneys general.
The July 20 ruling by U.S. District Judge Araceli Martínez-Olguín of the Northern District of California pauses the deal for 14 days while she considers a preliminary injunction, which would block the merger for the duration of the litigation and impose substantial costs on Paramount.
“My office and attorneys general nationwide have secured an emergency order blocking the unlawful merger of Warner Bros. and Paramount,” said California Attorney General Rob Bonta, who is leading a coalition of states seeking to block the deal on antitrust grounds. “This is a critical first win in our case to ensure this megamerger never sees the light of day. …With our lawsuit, we’re fighting for a free and fair market and a thriving film and television industry that serves creatives and audiences alike.”
As previously reported, the case argues that the deal, the largest in Hollywood history, would combine two of Hollywood’s five major film distributors and two of the five major owners of basic cable channels, “inflicting substantial harm on movie theaters, basic cable distributors, and ultimately, audiences nationwide.”
The deal has been approved by the Justice Department and Paramount had been hoping to close it as early as July 22.
