Home / Business and Economy / Judge Halts Paramount-Warner Bros. Deal Amid Antitrust Probe
Judge Halts Paramount-Warner Bros. Deal Amid Antitrust Probe
23 Jul
Summary
- Merger blocked until August 18 due to antitrust concerns.
- States allege violation of Clayton Act, reducing competition.
- Judge extends restraining order pending injunction hearing.
A federal judge has extended the order blocking the proposed Paramount-Warner Bros. merger by an additional 14 days, setting a new deadline of August 18 for the deal to close. This judicial action stems from an antitrust probe initiated by a coalition of 12 state attorneys general.
These states contend that the $111 billion merger would contravene the Clayton Act by diminishing competition in key markets, specifically basic cable and theatrical distribution. A hearing is slated for August 3 to address a request for a preliminary injunction that could halt the deal indefinitely.
Adding to the challenges, the Writers Guild of America has filed its own legal opposition, arguing the merger would depress writer compensation and lead to a homogenization of content. The judge has consolidated the WGA's injunction motion with the states' request, and has urged both parties to seek an agreement.
Paramount is seeking more time, proposing an evidentiary hearing in late August to cross-examine witnesses, and has offered to extend the current restraining order to accommodate this. However, the states are pressing for a ruling on the injunction without a lengthy hearing, citing insufficient preparation time.
