The bidding war for Warner Bros. Discovery was won by Paramount Skydance, which forced Netflix to drop out. The deal has however been put on hold by a judge.
Twelve US state attorneys general requested a temporary restraining order to block Paramount Skydance from closing the deal, and US District Judge Araceli Martinez-Olguin of the Northern District of California granted the request.
The deal is now effectively on hold for the next 14 days. On August 3, the judge will hold a hearing on the state attorneys general’s motion for a preliminary injunction, which would freeze the deal until the end of the trial.
The plaintiffs are led by California Attorney General Rob Bonta. They sued to block the merger on July 13, arguing that it would “extinguish competition” in Hollywood and would lead to higher prices, lower quality, and less content for film and television. Bonta and his colleagues argue that the transaction violates a federal law that bars mergers likely to substantially lessen competition.
Unsurprisingly, Paramount Skydance disagrees. A spokesperson told NBC News: “We are confident the evidence will demonstrate that the state AGs’ antitrust arguments are without merit as their alleged markets and claims of anticompetitive effects are without any basis in modern market realities”.
The deal has already been approved by the US Justice Department as well as the regulators in Australia and China, but it may not as easily be greenlit by the EU and the UK.
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