Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials HomeNewsU.S. judge pauses Paramount-Warner Bros. deal with ‘serious’ concernsCalifornia and 11 other states sued to block the Hollywood mega-merger on July 13Author of the article: You can save this article by registering for free here. Or sign-in if you have an account.In an aerial view, the Paramount logo is displayed on a water tower at the Paramount Studios lot on July 13, 2026 in Los Angeles, Calif. Photo by Justin Sullivan/Getty ImagesA U.S. federal judge temporarily paused Paramount Skydance Corp.’s US$110 billion takeover of Warner Bros. Discovery Inc. saying it “likely” violates antitrust law.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountorU.S. District Judge Araceli Martínez-Olguín in Oakland on Monday ordered the companies to hold off on consummating the deal for 14 days. Paramount and Warner Bros. hoped to close as soon as July 22.California and 11 other states sued to block the Hollywood mega-merger on July 13. The states allege the deal, which seeks to combine two of the five largest studios, would harm competition for film and cable TV distribution.Breaking business news, incisive views, must-reads and market signals. Weekdays by 9 a.m.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Posthaste will soon be in your inbox.We encountered an issue signing you up. Please try againThe judge scheduled an Aug. 3 hearing on whether to extend the hold for longer. The judge will decide whether to pause completion of the deal until after a trial to decide whether it is illegal under federal antitrust law.California has requested an April 2027 trial date. Paramount has only sought to have a decision on the preliminary injunction before September 30, when its daily payments to Warner Bros. kick off.The judge said the states showed that “serious questions going to the merits remain” in their challenge to the merger.“This is a critical first win in our case to ensure this megamerger never sees the light of day,” California attorney general Rob Bonta said in a statement. “History tells the tale of what happens when a few people have great power over markets that are central to Americans’ lives: fewer opportunities for more people, worse products and services for all people.”Paramount shares fell as much as 2.2 per cent on the news and were down 1.4 per cent at US$8.63 at 1:25 pm in New York. Warner Bros. shares were down 1.5 per cent at US$26.47.A spokesperson for Paramount didn’t immediately respond to a request for comment.The deal would give the merged company control over 27 per cent of the market for films widely released to theaters, the suit claims. Warner Bros. and Paramount would also allegedly control more than 30 per cent of anticipated blockbusters, widely released films with large production budgets. Post-merger, only four companies would control more than 90 per cent of that market — the new entity, along with Walt Disney Co., Universal and Sony Pictures Entertainment.“Plaintiffs present compelling evidence that the combined firm resulting from the transaction will possess substantial market share in the wide-release theatrical distribution market,” Martínez-Olguín wrote in her 10 page order. “On this combined firm market share alone, the Court is persuaded that it can presume the proposed merger is likely to violate antitrust laws.”Paramount has until June 4, 2027, to close the deal under its merger agreement, but must start paying Warner Bros. a daily fee of US$7 million beginning Sept. 30 until the transaction is completed. The company has said that the tie-up deal will better enable it to compete with tech giants like Amazon.com Inc. and Netflix Inc. in the rapidly evolving streaming market. It has pledged to release at least 30 films in theaters each year, a claim the states say does not hold up.Paramount reached a deal to buy Warner Bros. in February, defeating Netflix in a heated, months-long bidding war. The takeover unites two Hollywood studios behind legendary films from Casablanca and Harry Potter to Mission: Impossible; two major news networks in CNN and CBS; the streaming powerhouse HBO Max and dozens of cable networks.With assistance from Hannah Miller and Christopher Palmeri Join the Conversation This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.