US States Sue to Block Paramount-Warner Merger; Judge to Rule Next Week

A coalition of 12 U.S. states is suing to block the merger of Paramount and Warner Bros. Discovery, arguing the deal would harm competition in the entertainment industry. The merger would combine two of Hollywood’s last five major studios, bringing together Warner’s HBO Max streaming service and CNN under one roof. On Friday, a federal judge in Oakland heard arguments on the states’ request for a temporary restraining order to pause the merger. Judge Araceli Martinez-Olguin said she would issue a ruling by next Wednesday, July 22. During the hearing, the judge noted that Paramount appeared to concede it would not suffer significant harm if the transaction were temporarily halted. The states contend that the merger would reduce competition and potentially raise prices for consumers. The companies have argued that the deal is necessary to compete with larger rivals. The judge’s decision will determine whether the merger can proceed while the broader lawsuit is litigated.