SAN FRANCISCO - A federal judge in California on Monday ordered Paramount Skydance and Warner Brothers Discovery to temporarily pause their merger while a case brought by multiple states challenging the deal moves forward.
The companies are prohibited from closing their $110 billion deal for 14 days until another hearing is held on Aug 3 regarding a preliminary injunction, which would prevent Paramount and Warner Brothers from closing the transaction before a final decision is reached.
The states raised "serious questions" about the deal's potential to be anticompetitive, the judge said in her ruling, adding that "the balance of equities and public interest tip sharply in favor of the Plaintiff States."
