Judge sides with Bonta, says no to Paramount-Warner Brothers merger - for now

California Attorney General Rob Bonta’s request for a temporary injunction to stall the $110 billion Trump-backed Paramount-Warner Brothers merger has been granted by federal Judge Araceli Martínez-Olguín after both sides made their cases in a Friday hearing in Oakland.

“We’re fighting for a free and fair market and a thriving film and television industry that serves creatives and audiences alike. We have a full tank of gas, the law on our side, and look forward to continuing to make our case,” said Bonta.

Martínez-Olguín will halt the merger for 14 days while the court considers the merits of Bonta’s antitrust lawsuit against Paramount.

Bonta and his coalition of attorneys general said the merger would irreparably damage the theatrical film distribution market and presented evidence that the combined entity would control 27% of all releases. The court said it will examine the impact of the deal on wide-release Hollywood films to determine whether to take further legal action against the merger.

The coalition maintained the merger violated antitrust law and is “vital to the public interest” to not allow the deal to move forward without a trial.

Representatives from Paramount defended the merger and said it would make the streaming market more competitive, which the court said could not justify the merger alone. Paramount also said it would not incur “carrying costs” for a delay in the merger until the end of September 2026, which the courts used to justify the temporary delay.

Former Department of Justice Assistant Attorney General Doug Melamed, who previously led the antitrust division under the Clinton administration, said the court’s decision falls in line with a progressive legal antitrust precedent which “suggests that she will likely be receptive to the plaintiffs’ arguments as the case proceeds.”

“That does not mean that the plaintiffs will win the case or even a preliminary injunction, but it does suggest that the defendants will have to put together a strong case to prevail,” Melamed said of Paramount’s chances to close the merger.