A U.S. court has temporarily blocked the merger between Paramount and Warner Bros.
21 July 18:09
Paramount Skydance Media’s acquisition of Warner Bros. Discovery (WBD) has been halted by a ruling from District Court Judge Araceli Martinez-Olgin in Oakland, California, who granted a joint motion filed by the attorneys general of 12 states. This was reported by "Komersant Ukrainian", citing DW.
The planned transaction was valued at $110 billion, and the companies had expected to close the deal on July 22. As a result, two film studios, two streaming platforms, and two news organizations would have come under the control of David Ellison —the son of billionaire and tech magnate Larry Ellison, the founder of Oracle—according to DW.
California Attorney General Rob Bonta and his counterparts from 11 states expressed concerns in a filing with a federal court that such a development would harm competition in the film distribution market and the licensing of content for cable television channels.
The WBD media holding company includes Warner Bros. Studios, HBO, the HBO Max streaming service, as well as entertainment, sports, and news channels, including CNN, TNT Sports, and Discovery.
The political implications of a potential merger between Paramount and Warner Bros.
The temporary injunction against the deal, imposed by the court, is set to remain in effect for 14 days. Meanwhile, Paramount’s acquisition of the WBS media holding company from Skydance “has a political dimension,” the publication notes.
“Oracle co-founder Larry Ellison is an ally of President Donald Trump. Trump has spoken highly of the Ellison family and has publicly called for a change in CNN’s ownership,” the network recalls. “We’re trying to get CNN back on track,” the authors quote the U.S. president as saying in a recent statement during a phone interview broadcast on CNN.
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