Judge temporarily suspends Paramount-Warner Bros. deal

A federal judge on Monday temporarily stopped Paramount from completing its purchase of Warner Bros. Discovery for $111 billion while considering a lawsuit that claims the deal violates antitrust laws, a disruption of one of the largest media deals in history.

Judge Araceli Martínez-Olguín of the U.S. District Court for the Northern District of California issued the temporary injunction requested by the 12 states suing to block the deal. The Preservation Order lasts for 14 days.

“For us, this is a critical first victory to ensure that this mega-merger never sees the light of day,” California Attorney General Rob Bonta, a Democrat who is leading the lawsuits, said in a statement. A Paramount spokeswoman did not immediately respond to a request for comment.

Paramount reached an agreement this year to buy Warner Bros. Discovery in an effort to compete with streaming giants like Netflix and Amazon. The merger would bring together two major film studios, streaming services HBO Max and Paramount+, and networks including CBS and CNN under one roof.

The group of states, which includes California, New York and Colorado, said in the request for the restraining order that Paramount could close the deal as early as July 22. States argued that the deal would give Paramount excessive dominance over the production of flagship films, expensive blockbusters that would sustain the studio’s revenue, and basic cable channels.

Paramount argued in a court hearing before Judge Martínez-Olguín last week that the states’ request for a temporary injunction was unnecessary and that it planned to defend its deal in court.

This is a developing story. Check back for updates.

Benjamin Mullin and Lauren Hirsch contributed reporting.

Seamus Hughes contributed research.