Paramount and Warner Bros. merger hit with temporary restraining order
Last week, a group of state attorneys general led by California's Rob Bonta filed a lawsuit seeking to block the $110 billion acquisition due to antitrust...
Key points
- Last week, a group of state attorneys general led by California's Rob Bonta filed a lawsuit seeking to block the $110 billion acquisition due to antitrust concerns.
- The proposed deal would unite the storied film studios of Paramount and Warner Bros, the CBS broadcast network, a sprawling portfolio of pay TV networks that includes CNN, TNT, MTV and BET, and streaming services Paramount+ and HBO Max, under one roof.
- The states could seek another temporary restraining order after the 14 days, or a preliminary injunction, which would further delay the deal.
- Paramount has said it's on track to close the deal by the end of September.
What happened
Last week, a group of state attorneys general led by California's Rob Bonta filed a lawsuit seeking to block the $110 billion acquisition due to antitrust concerns. The proposed deal would unite the storied film studios of Paramount and Warner Bros, the CBS broadcast network, a sprawling portfolio of pay TV networks that includes CNN, TNT, MTV and BET, and streaming services Paramount+ and HBO Max, under one roof. The states could seek another temporary restraining order after the 14 days, or a preliminary injunction, which would further delay the deal. Paramount has said it's on track to close the deal by the end of September. Paramount also agreed to a $7 billion breakup fee if the deal does move forward due to regulatory concerns. Paramount has defended the deal as "pro-competitive." In court papers filed on Thursday, Paramount said the temporary restraining order "presents one of the weakest merger challenges in modern antitrust history." The company said the deal would "produce more high-quality content for consumers; it will incentivize investment in job-creating film production; it will stabilize basic cable television (which is gravely threatened by cord cutting); and it...