A judge ordered a temporary halt to the Paramount-Warner Bros. merger on Monday, as a state coalition argues it would violate federal antitrust law, leading to higher prices and fewer movies and TV shows.
Judge Araceli Martinez-Olguin granted a 14-day restraining order after hearing argument from both sides on Friday morning. Paramount had previously agreed not to close the transaction before July 22.
“Plaintiff States’ showing at least demonstrates that serious questions going to the merits remain, weighing in favor of preliminary injunctive relief,” the judge wrote, adding that Paramount has acknowledged it will not be harmed by the delay until the end of September. “Paramount and Warner Bros. will continue to operate as separate, viable companies competing in the marketplace while they wait for the Court to adjudicate this case. The balance of equities, combined with the public’s vital interest in antitrust enforcement, therefore tips sharply in favor of the requested injunctive relief.”
The 12-state coalition, led by California, brought a motion for the temporary restraining order. The states are also seeking a preliminary injunction, which would block the merger until the judge rules on the merits of the states’ lawsuit.
