A federal judge issued a 14-day temporary restraining order pausing the proposed acquisition of Warner Bros. Discovery by Paramount and Skydance. The deal is valued at $110 billion. A coalition of 12 states led by California filed the antitrust lawsuit prompting the ruling.
The lawsuit alleges the merger violates the Clayton Act by substantially harming competition. The coalition claims the deal could increase consumer prices and limit content choices for consumers.
State officials argue the combined entity would hold excessive leverage over movie theaters and cable distributors. Paramount announced it will vigorously defend the transaction in court.