A federal judge has temporarily put on hold the Paramount Skydance Corporationโs USD 110 billion takeover of Warner Bros. Discovery Inc.
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Judge Araceli Martinez-Olguin on Monday granted a 14-day restraining order after hearing argument from both sides on Friday morning.
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Paramount had previously agreed not to close the transaction before July 22.
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“Plaintiff States’ showing at least demonstrates that serious questions going to the merits remain, weighing in favour 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.
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“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 favour of the requested injunctive relief.”
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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.
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The 14-day restraining order could be extended to as long as 28 days. Martinez-Olguin also set a hearing on the preliminary injunction for August 3, though that date, too, could be delayed if the parties agree.
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Paramount has pushed for a hearing on the injunction with live witnesses. The company hopes to get a ruling on the injunction by early September. If the deal is not closed by September 30, Paramount will start to owe millions of dollars a day to Warner Bros. investors.