Paramount and Warner Bros.
The business merger drama between the two big studios continues. It’s been a journey since late last year, when Paramount successfully acquired Warner Bros. after a deal had been made with Netflix. Many related parties have taken action to stop the merger from taking place, and earlier this summer, the Justice Department stamped its approval on Paramount Skydance’s $111 billion bid. However, the deal is sure to encounter more speed bumps as it faces legal challenges.
A Federal Judge Presses Pause
Variety reports that a pause has been put on the merger by Judge Araceli Martinez-Olguin, as a state coalition argues it would violate federal antitrust law, which would lead to higher prices and fewer movies and TV shows. After hearing cases from both sides, the Federal Judge has granted a 14-day restraining order and Paramount has agreed not to close the deal before July 22.
The Judge also noted that this pause would not harm Paramount until the end of September. Martinez-Olguin wrote,
“Plaintiff States’ showing at least demonstrates that serious questions going to the merits remain, weighing in favor of preliminary injunctive relief. 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 balance of equities, combined with the public’s vital interest in antitrust enforcement, therefore tips sharply in favor of the requested injunctive relief.”
The 14-day restraining order has the potential to extend to 28 days. Judge Martinez-Olguin is also set for a hearing on a preliminary injuction on August 3.
Merger Opposition
A growing number of industry figures have come out against the merger of the two studios. An open letter opposing the merger has been written and posted on the site Blockthemerger.com.
“We are deeply concerned by indications of support for this merger that prioritize the interests of a small group of powerful stakeholders over the broader public good. The integrity, independence, and diversity of our industry would be grievously compromised. […] Competition is essential for a healthy economy and a healthy democracy. So is thoughtful regulation and enforcement. Media consolidation has already weakened one of America’s most vital global industries—one that has long shaped culture and connected people around the world.“
Some of the stars who have signed the letter include JJ Abrams, Damon Lindelof, David Fincher, Denis Villeneuve, Adam McKay, Ben Stiller, Bryan Cranston, Catherine Keener, David Chase, Emma Thompson, Don Cheadle, James Schamus, Jane Fonda, Jason Bateman, Lin-Manuel Miranda, Noah Wyle, Tiffany Haddish, Mark Duplass, Joaquin Phoenix, Lily Gladstone, and more.
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