U.S. Judge Puts Warner Takeover on Hold for Two Weeks

During this period, hearings will be held regarding the long-term preliminary injunction sought by the states to block the execution of the deal, which is worth more than $100 billion.

Among other things, the states argue that the merger will distort competition for popular movies and thereby put pressure on movie theaters.

In the view of Judge Araceli Martínez-Olguín in Oakland, near San Francisco, they were at least able to demonstrate that Paramount and Warner together hold a significant market share in the industry. This makes it likely that the merger will be deemed anti-competitive. This justifies a temporary suspension of the merger. For Paramount, a delay could prove costly.