Judge orders Paramount to temporarily pause Warner Bros acquisition

A coalition of states led by California won ​a pause of Paramount’s $110 billion acquisition of Warner Bros. Discovery on Monday, ⁠after they argued letting the merger ‌close would irreparably harm ​competition.

California and 11 states sued on July 13, arguing the deal would create a media behemoth ⁠with the power to ‌raise prices ‌in film and television.

If the deal is allowed to ⁠close, Paramount would soon begin cutting jobs and sharing ‌sensitive information with ‌Warner Bros., actions that are hard to undo if the ⁠merger is ultimately found ​to be ⁠illegal, ​the states argued.

The lawsuit, filed in Oakland federal court, threatens to derail Paramount CEO ⁠David Ellison’s bid to transform his company into a major rival ⁠of Netflix and Disney.

Paramount has said the lawsuit distorts settled antitrust law, and that ⁠delaying the transaction ‌would only harm entertainment ​workers ‌who have already suffered through ​years of industry disruption.