'Keep Up the Fight': Federal Judge Pauses Paramount-Warner Bros. Merger

The $110 billion megamerger between Paramount and Warner Bros., widely criticized as a "disaster" by antitrust advocates, has been temporarily put on hold.

US District Judge Araceli Martínez-Olguín on Monday granted a temporary restraining order sought by several Democratic state attorneys general to pause the merger from going forward.

In her ruling, Martínez-Olguín found that the plaintiffs provided "compelling evidence that the combined firm resulting from the transaction will possess substantial market share in the wide-release theatrical distribution market," meaning that the merger between the two studios is "likely to violate antitrust laws."

The judge—appointed by former President Joe Biden—issued a 14-day restraining order on the merger, writing that "Paramount and Warner Bros. will continue to operate as separate, viable companies competing in the marketplace while they wait for the court to adjudicate this case."

The combination of Paramount and Warner Bros. has long been controversial because it would put control of CBS, CNN, HBO, TikTok, and other major media properties all under the control of David Ellison, the son of billionaire Larry Ellison, a major donor to President Donald Trump.

California Attorney General Rob Bonta, the lead plaintiff in the lawsuit against Paramount-Warner Bros. deal, hailed Martínez-Olguín's ruling as a "critical first win in our case to ensure this megamerger never sees the light of day."

"History tells the tale of what happens when a few people have great power over markets that are central to Americans' lives: fewer opportunities for more people, worse products and services for all people," he said. "With our lawsuit, we're fighting for a free and fair market and a thriving film and television industry that serves creatives and audiences alike."

New York Attorney General Letitia James, a co-plaintiff in the lawsuit, delivered a video statement calling the ruling "an important victory for consumers, for workers, and for fair competition."

"We are taking action to protect New Yorkers from the harms of unlawful corporate consolidation," James added, "and protecting democracy while we're at it."

Sen. Elizabeth Warren (D-Mass.), a longtime critic of the merger, called the ruling "a WIN thanks to the state attorneys general who stood up and pushed back," and added, "Let's keep up the fight."

Rep. Becca Balint (D-Vt.) said the ruling was "welcome news," while warning that "we're not out of the woods yet."

"This merger would force prices up, bring wages down, and lead to people losing jobs—all to bring TikTok, CNN, and CBS under one roof," Balint observed. "Perhaps Paramount CEO David Ellison can't wine and dine his way through this one after all."

Attorney Norm Eisen, co-founder of Democracy Defenders Action, accused the Ellisons of trying to "rush" the merger over the finish line before courts could examine antitrust claims being made against it.

"Now the case gets decided on the merits," Eisen said.