The much-discussed takeover of mega studio Warner Bros. Discovery by Paramount is on hold. A coalition of twelve American states, led by California, went to court to complain about the feared monopoly that the takeover would facilitate. The court has now decided that the agreement may not be completed for the next two weeks.
Large selection
110 billion dollars, that’s how much money is involved in the takeover that is turning the studio world upside down. Paramount Skydance, as the bidding company is fully called, will become the rights holder of the studio that produces cinema hits such as Superman (2025) produced and on HBO Max, among others House of the Dragon (2022– ) and the new Harry Potter series.
Judge thinks along
Last week, twelve states filed a lawsuit over the acquisition of Warner Bros. by blocking Paramount. The prosecutors fear not only an unwanted monopolization of the film supply, but also increased consumer prices. It previously became clear that if Paramount completes the takeover, the company will likely quickly cut jobs.
Deadline
The judge has listened to the complaints of the states and calls it proven that Paramount could gain too much power in the distribution of cinema films. That is why the takeover has been paused for at least two weeks. It is (extra) important for Paramount that the takeover is finally approved before September 30. After that, the company would owe millions of dollars a day to Warner Bros investors due to previously made agreements.
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