California and 11 other states have filed for a temporary restraining order and a preliminary injunction to prevent the Paramount-Warner Bros. deal from closing while the states pursue an antitrust lawsuit.
In a motion filed on Monday evening, the states asked a federal judge to act by July 22. Paramount has previously informed the states that it will not close the transaction before that date.
“The Transaction will eliminate competition between Paramount and Warner Bros. and enable the combined entity to raise prices and reduce output,” the motion states. “Plaintiff States have an interest in enforcing antitrust laws and their citizens face the risk of profound and irreversible injury in the absence of an injunction.”
The states filed a lawsuit earlier in the day, alleging that the $111 billion transaction violates federal antitrust law in three markets: wide-release theatrical distribution, blockbuster film distribution, and basic cable TV distribution. The states argued that the deal would hurt consumers as well as theater owners and cable and satellite companies.
Paramount Skydance quickly responded, saying the states had a “fundamentally flawed” understanding of the facts and the law.
