A federal judge has temporarily blocked Paramount Skydance’s $110 billion acquisition of Warner Bros. Discovery, ruling that the deal “likely” violates antitrust law. The order puts the mega-merger on hold amid legal challenges backed by the lobbying group Cinema United.
Michael O’Leary, CEO of Cinema United, sent a letter to theater owners Wednesday reiterating the organization’s opposition to the Paramount-Warner Bros. union and endorsing litigation filed by state attorneys general that prompted the judge’s decision. The group, which represents many of the nation's cinema operators, has argued the deal would harm competition in the film industry.
If the transaction collapses, the Ellison family—led by Oracle co-founder Larry Ellison—would face a $9.8 billion financial hit, according to Bloomberg. The family is the controlling shareholder of Paramount Skydance.
Despite the legal setback, Paramount expressed confidence in the deal’s eventual completion. A company representative said the firm remains “highly confident” that the acquisition will proceed, Bloomberg reported.
The judge’s ruling marks a significant hurdle for one of the largest media mergers in recent years. Paramount Skydance, a studio backed by the Ellisons, and Warner Bros. Discovery had expected to combine their film and television assets. No further court dates have been announced.