Judge temporarily blocks $110 billion Paramount-Warner Bros. merger
New Jersey joined a coalition of 12 states arguing the deal would reduce competition, raise prices, and leave consumers with fewer entertainment choices.
A federal judge temporarily blocked the proposed $110 billion merger between Paramount Skydance Corp. and Warner Bros. Discovery on Monday, giving New Jersey and 11 other states an early victory in their antitrust lawsuit challenging the deal.
The temporary restraining order, issued Monday by the U.S. District Court for the Northern District of California, prevents the companies from completing the merger for at least two weeks while the court considers a request for a preliminary injunction.
New Jersey Attorney General Jennifer Davenport called the ruling “a major win for consumers.”
“It is the first step in what I hope will be a total victory for New Jerseyans, who can ill afford another price hike caused by opportunistic billionaires,” Davenport said in a statement.
New Jersey joined a coalition of state attorneys general earlier this month in suing to stop the merger, arguing it would violate federal antitrust law by reducing competition in the entertainment industry.
The states contend the combined company would control roughly one-third of the U.S. theatrical film distribution market and nearly one-third of the nation’s basic cable programming, giving it greater leverage over movie theaters, cable providers, and consumers.
The lawsuit argues the merger would substantially lessen competition in three markets: film distribution, blockbuster film distribution, and licensing cable television channels. State attorneys general say that reduced competition could lead to higher prices, fewer movies and television shows, and lower-quality programming.
The case was filed in the U.S. District Court for the Northern District of California under Section 7 of the Clayton Act, the federal law that prohibits mergers that may substantially lessen competition or create a monopoly.
The challenge comes as New Jersey has sought to establish itself as a major center for film and television production, attracting large studios and expanding tax incentives for the industry.
The coalition includes the attorneys general of New Jersey, California, Arizona, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Mexico, New York, Oregon, and Washington.
Krystal Knapp is the founder, executive director, and publisher of The Jersey Vindicator and the founder of Planet Princeton. She has more than two decades of experience reporting in New Jersey, including 10 years at The Trenton Times, where she was the newsroom’s public records and computer-assisted reporting expert. Her work has been recognized by the New Jersey Press Association and the Center for Cooperative Media. You can reach her at Krystal AT jerseyvindicator.org.