State AGs Seek Temporary Restraining Order To Pause Paramount

Key Points:

• State attorneys general, led by California AG Rob Bonta, have filed for a temporary restraining order (TRO) and preliminary injunction to halt Paramount’s proposed merger with Warner Bros. Discovery, fearing the deal could close as soon as July 22 and harm competition.
• The lawsuit argues the merger would create unlawful market concentration in theatrical distribution, film releases, and cable channel licensing, leading to layoffs and reduced competition that would be difficult to reverse if the deal proceeds.
• Paramount disputes the claims, calling the lawsuit a flawed application of antitrust laws, and warns that delaying the merger would harm entertainment workers and jobs already affected by industry disruptions.
• The AGs highlight that Paramount declined to pause the merger during court proceedings and argue that a delay would cause no significant harm to the companies, noting the merger agreement allows for extended timelines and financial penalties for delay.
• This legal action follows a similar case where Bonta and other AGs successfully obtained a TRO and injunction to pause Nexstar’s merger with Tegna, demonstrating a pattern of state-level scrutiny over major media consolidations.