US judge puts Warner takeover on hold until mid-August

A US judge has extended a temporary halt on the proposed $100 billion acquisition of Warner Brothers by Paramount, pushing the pause until mid-August. Judge Araceli Martinez-Olguin's decision follows a lawsuit filed by twelve US states aiming to block the massive deal.

The states argue that the merger would significantly distort competition, particularly impacting cinemas by concentrating market share in popular film production. While the US Justice Department had initially approved the deal without conditions, citing no harm to competition or consumers, the states have successfully demonstrated that Paramount and Warner together hold a substantial market share, justifying the temporary suspension.

The extended delay, until August 17, is intended to allow the court to consider motions related to a preliminary injunction sought by the states. The Justice Department's approval was reportedly fast-tracked by leadership before relevant legal experts could finalize their recommendation, according to the Wall Street Journal.

Paramount's bid is backed by the family of software billionaire Larry Ellison. Notably, Netflix had initially agreed to acquire Warner's streaming and studio business last year, but Paramount submitted a higher offer for the entire Warner Bros. Discovery conglomerate, including television channels like CNN. Concerns have been raised by critics of Donald Trump that CNN might lose editorial independence under Paramount's ownership, a scenario that has occurred with other media outlets acquired by billionaires loyal to the former president.