Merger deal between Paramount and Warner Bros. Discovery suspended

A U.S. federal court has temporarily suspended completion of the deal between Paramount and Warner Bros. Discovery, granting a motion by a group of American states.

This is reported by 1news.az citing Associated Press. According to the court order, the parties will not be able to close the deal for at least 14 days until a separate court hearing scheduled for August 3. It is emphasized that the deal is valued at about 81 billion U.S. dollars (137.7 billion manats).

A lawsuit against the merger was filed by 12 U.S. states led by California. The plaintiffs argue that the merger could significantly reduce competition in the media market, lead to higher prices for consumers, reduce content choices, and increase the influence of the combined company in the film distribution and cable television markets.

As AP notes, the temporary suspension does not mean a final ban on the deal. However, until the court rules on the preliminary injunction, Paramount and Warner Bros. Discovery are not entitled to complete the merger.

If the court subsequently grants the states' request for a preliminary injunction, closing of the deal may be postponed for a longer period.

According to AP, the parties have not yet publicly commented on the court's decision.