Judge temporarily blocks Paramount-Warner Bros. merger in lawsuit joined by New Jersey
TRENTON, N.J. — A federal judge has temporarily blocked the proposed $110 billion merger between Warner Bros. Discovery Inc. and Paramount Skydance Corp. while a lawsuit challenging the deal moves forward, New Jersey Attorney General Jennifer Davenport announced Monday.
The U.S. District Court for the Northern District of California granted a temporary restraining order preventing the merger for two weeks while the court considers whether to issue a preliminary injunction that would halt the transaction for the duration of the litigation.
Earlier this month, Davenport joined a coalition of 12 attorneys general in filing suit to block the merger, arguing it would reduce competition, increase prices, lower content quality and result in fewer movies and television shows.
“Today’s order, which temporarily blocks this unlawful merger while our case continues, is a major win for consumers. It is the first step in what I hope will be a total victory for New Jerseyans, who can ill-afford another price hike caused by opportunistic billionaires,” Davenport said. “Make no mistake: we will continue to stand up in court against corporate monopolists who drive up prices and harm New Jerseyans.”
According to the lawsuit, the proposed merger would combine two of Hollywood’s five major film distributors and two of the five major basic cable companies, eliminating competition between Paramount and Warner Bros.
The attorneys general contend the combined company would control roughly one-third of the U.S. theatrical motion picture market and nearly one-third of the basic cable programming market.
The lawsuit alleges the merger violates Section 7 of the Clayton Act, which prohibits mergers that may substantially lessen competition or tend to create a monopoly. It argues the transaction would reduce competition in the markets for film distribution, anticipated blockbuster film distribution and licensing of cable television channels.
In addition to New Jersey, the coalition includes the attorneys general of California, Arizona, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Mexico, New York, Oregon and Washington.
