Judge in case brought by Arizona, 11 other states temporarily blocks Paramount-Warner merger

A federal judge on Monday temporarily blocked Paramount’s proposed merger with Warner Bros. Discovery a week after Arizona and 11 other states filed a lawsuit to stop the blockbuster deal.

The judge issued a temporary restraining order to put the deal on hold while considering the 12-state coalition’s request for a preliminary injunction in the case.

“This merger violates federal law and will drive up prices for Arizonans and could lead to job losses across our state,” Attorney General Kris Mayes said in a statement. “I’m grateful the court issued a TRO so the issues surrounding this unlawful mega-merger can be properly adjudicated.”

Led by the California attorney general, the states filed their lawsuit July 13 in U.S. District Court for the District of Northern California. The complaint argues that Paramount Skydance Corp.’s proposed acquisition of Warner Bros. Discovery violates the Clayton Antitrust Act of 1914 by reducing competition in three markets: film distribution, anticipated blockbuster film distribution and cable TV.

If the deal goes through, HBO Max, “Harry Potter” and CNN would be part of the same media conglomerate as CBS, “Top Gun” and the Paramount+ streaming service.

Including billions of dollars in debt, Paramount’s proposed purchase of Warner is currently valued at nearly $111 billion based on outstanding shares, according to The Associated Press.

California and Arizona are joined by Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon and Washington in the lawsuit.

The Associated Press contributed to this report.

Related

Boeing plans Mesa military manufacturing campus expansionHuge industrial park planned on Salt River Pima-Maricopa Indian Community landNew owners of Club West Golf Course shop the site; D.R. Horton eyes 162-acre parcelPhoenix mayor says TSMC’s $265 billion investment is historic on multiple levelsTSMC announces additional $100 billion investment in Arizona operationsLululemon, others set to open at Phoenix’s PV development