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The saga of Paramount and Warner Bros. Discovery merging into one of the biggest entertainment companies of all time has hit a major snag. Though at one point it appeared that Netflix might be the company that walked away with owning everything that Warner Bros. Discovery was holding, the Ellison-backed Paramount Skydance ended up offering a deal that was seen as even better, with plenty of guarantees that would make sure shareholders got paid if there were any delays in closing. Though it seemed like an inevitability, Paramount and Warner Bros. becoming one has hit a snag for at least the next two weeks.
After a hearing last week where 12 states collectively sued Paramount Skydance to try and block the merger, arguing that the two companies combined would violate antitrust laws and give them leverage over both movie theater owners, cable television distributors, and, more importantly, consumers. California District Judge Araceli Martínez-Olguín officially granted the motion for a temporary restraining order, forcing a two-week pause on anything related to the merger.
“Plaintiffs present compelling evidence that the combined firm resulting from the transaction will possess substantial market share in the wide-release theatrical distribution market,” Judge Martínez-Olguín wrote. “On this combined firm market share alone, the Court is persuaded that it can presume the proposed merger is likely to violate antitrust laws.”
Developing.
