A US court has temporarily blocked the merger of Paramount Skydance and Warner Bros. Discovery for $110 billion
Kyiv • UNN
A federal court has suspended the acquisition of Warner Bros. Discovery by Paramount Skydance until August 3. The lawsuit was filed by 11 states led by California due to the threat to competition in the media market.
A federal court in the United States has ordered Paramount Skydance to suspend its $110 billion acquisition of Warner Bros. Discovery until at least August 3. Reuters reports, writes UNN.
Details
The decision was made after a lawsuit by a coalition of states led by California, which claims the merger would significantly limit competition in the media market. Following the news, Warner Bros. Discovery shares fell by approximately 4% during trading.
U.S. District Judge Araceli Martínez-Olguín stated that the states have "convincingly demonstrated" that the deal could unlawfully reduce competition. A hearing is scheduled for August 3, during which the court will decide whether to keep the injunction in place until the case is resolved.
States believe the deal will weaken competition
The lawsuit was filed by California and 11 other states on July 13. They argue that after the merger, the new company would be able to raise prices for film and television content.
The judge also noted that completing the deal before a final ruling could lead to irreversible consequences, including job cuts and the exchange of confidential information between the companies.
Paramount Skydance stated that the states' antitrust claims are unfounded and expressed confidence that this will be proven in court during further proceedings.