According to jamaicaobserver_biz, SAN FRANCISCO, United States (AFP)—A federal judge in California on Monday ordered Paramount Skydance and Warner Brothers Discovery to temporarily pause their merger while a case brought by multiple states challenging the deal moves forward. The companies are prohibited from closing their $110 billion deal for 14 days until another hearing is held on August 3 regarding a preliminary injunction, which would prevent Paramount and Warner Brothers from closing the transaction before a final decision is reached. The states raised "serious questions" about the deal's potential to be anticompetitive, the judge said in her ruling, and continued that "the balance of equities and public interest tip sharply in favor of the Plaintiff States." Last week, 12 states led by California sued to block the deal in a direct challenge to the Trump administration's Justice Department, which approved the merger last month. The combined company -- which came about after Netflix bowed out of the battle to buy Warner Brothers -- would control a sprawling roster of assets, including CNN, Warner Bros. Pictures and the HBO Max streaming service. The saga has become politically charged, with President Donald Trump publicly saying he would weigh in on the deal as the fate.
DevelopingSource: Jamaicaobserver?
Paramount Skydance merger paused by US judge ahead of Q2 earnings
A federal injunction halts the $110 billion deal pending state-led antitrust litigation, casting a shadow over Paramount's outlook as it prepares to report second-quarter results tomorrow.
PSKYParamount Skydance Corp
8.39-3.65%