US court halts Paramount-Warner Bros tie‑up amid antitrust challenge

(Sharecast News) - A US federal judge has put a temporary halt on the proposed $110bn merger between Paramount Skydance and Warner Bros Discovery, issuing a 14‑day restraining order that prevents the companies from closing the deal or beginning integration. The move follows a lawsuit filed by 12 US states, including California and New York, arguing the tie‑up would weaken competition and ultimately raise costs for consumers.

Prosecutors said combining two major studios risked "substantial harm" to cinemas, cable distributors and audiences nationwide.

Both companies pushed back, claiming the states had misread market dynamics and that the merger would improve efficiency in streaming.

Judge Araceli Martínez‑Olguín granted the temporary block after hearing arguments last week, saying the coalition had raised "serious questions" about the impact on movie distribution. She warned that allowing the deal to proceed now would make it "extraordinarily difficult to unscramble the egg" should the court later decide to stop it entirely.

The judge also rejected the companies' contention that a delay would be damaging, noting that the public's interest in antitrust enforcement outweighed any short‑term disruption and that both studios would "continue to operate as separate, viable companies" while the case progresses. Further hearings were scheduled to take place in August.

As of 1100 BST, Paramount shares were up 0.47% in pre-market action at $8.61 each, while Warner Bros Discovery shares had ticked up 0.15% to $25.90 per share.





Reporting by Iain Gilbert at Sharecast.com