Judge orders Paramount to temporarily pause Warner Bros acquisition
The order gives 12 states more time to press claims the merger would reduce competition and raise prices for consumers, the attorneys general said.
- On Monday, California District Judge Araceli Mart issued a 14-day temporary restraining order halting Paramount's $110 billion acquisition of Warner Bros. Discovery following a lawsuit from 12 states challenging the merger.
- Rob Bonta, California's lead attorney, filed the lawsuit last week, alleging the merger would "lead to higher prices, lower quality, and less content for film and television, harming movie theaters, basic cable distributors, and ultimately, audiences."
- In court papers filed Thursday, Paramount called the challenge "one of the weakest merger challenges in modern antitrust history" and agreed to a $7 billion breakup fee if the deal fails due to regulatory concerns.
- Paramount intended to close the deal as early as July 22, but the 14-day pause disrupts this timeline; delays beyond Sept. 30 trigger a quarterly "ticking fee" of about $650 million payable to WBD shareholders.
- The court will next consider a preliminary injunction to prevent closing until the case concludes, mirroring a prior $6.2 billion deal between Nexstar Media Group and Tegna that faced a similar court-ordered pause.
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