A federal judge on Monday temporarily blocked Paramount's proposed merger with Warner Bros. Discovery.
U.S. District Judge Araceli Martínez-Olguín granted a 14-day temporary restraining order, which stops the companies from immediately closing the $110 billion deal.
The lawsuit, brought by California and a coalition of other states, argues the merger would reduce competition by combining two of Hollywood's major film studios and some of the nation's largest television and streaming assets.
“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," said California Attorney General Rob Bonta. "With our lawsuit, we’re fighting for a free and fair market and a thriving film and television industry that serves creatives and audiences alike. We have a full tank of gas, the law on our side, and look forward to continuing to make our case.”
Paramount has vowed to fight the lawsuit, maintaining the merger would not substantially lessen competition.
