A federal judge has temporarily blocked Paramount Skydance from completing its proposed $110 billion merger with Warner Brothers Discovery while a multistate antitrust challenge proceeds.
The federal court for the Northern District of California granted a temporary restraining order sought by New York Attorney General Letitia James and attorneys general from 11 other states.
The order prevents the companies from completing the transaction until the court rules on the coalition's request for a preliminary injunction, according to James' office.
James and the other attorneys general sued July 13, alleging the merger would illegally reduce competition in film, television, cable and streaming markets.
The proposed transaction would combine two of Hollywood's five major film studios and two of the five largest basic cable companies, the lawsuit says. Paramount would control more than 50 news, sports and entertainment channels and three leading streaming services.
The coalition alleges the combined company could raise movie-ticket and cable prices, reduce the number of new releases and limit opportunities for workers and businesses in the film and television industries.
James called the temporary order an important step but said the antitrust case will continue.
Arizona, California, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, Oregon and Washington joined New York in the lawsuit.
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