Federal court in California ordered temporary suspension of merger between Paramount, Skydance and Warner Bros. Discovery$110 billion.
The court decision prohibits the two companies from concluding the deal for a period of 14 days, until the new hearing scheduled for August 3. It is then expected to consider whether a longer interim order will be imposed to prevent completion of the transaction until a final decision is taken.
The temporary suspension in the merger came after the lawsuit filed on July 13, California and another 11 states, led by California Attorney General Rob Boda.
According to the lawsuit, the states argue that the takeover of Warner Bros. Discovery from Paramount will create an extremely powerful player in the entertainment field, who could influence prices and limit competition to the film and television market.
Judge Araceli Martinez-Algin of the Federal Court of Northern District of California found that the applicant states have presented «serious questions as to the substance» the case, which justifies the temporary termination of the procedure.
«This is a crucial first victory in our case, which will ensure that this huge merger does not come true.», said Rob Boda after the decision. Paramount has not so far officially commented on the judicial development.
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