US judge halts Warner Bros Discovery takeover by Paramount Skydance

A US federal judge has temporarily blocked the multibillion-dollar acquisition of Warner Bros Discovery (WBD) by Paramount Skydance, pending a thorough review of the deal.

The judge in Oakland, California, announced her decision on Monday, stating a need for in-depth examination of the proposed merger. This action follows a lawsuit filed a week prior by California and eleven other US states. They argue that the acquisition, which had already received regulatory approval, could lead to "higher prices, lower quality, and less content" for audiences.

The twelve states, all led by Democrats, are invoking a federal law that prohibits mergers likely to substantially lessen competition. The US government's Department of Justice had initially approved the merger in June, concluding it would "not likely result in a substantial lessening of competition or harm to American consumers." The deal's value is estimated at approximately $111 billion.

Paramount aims to acquire the entire WBD group, including its television channels like CNN. Notably, Paramount CEO David Ellison and his father, Larry Ellison of Oracle, are known supporters of former President Donald Trump. This connection has raised concerns among critics about the potential impact on CNN's editorial independence. The merger agreement was signed in late February, after Netflix withdrew from the bidding, and was subsequently approved by WBD shareholders in late April.