Paramount-Warner Bros deal paused through Aug 17, judge rules

Paramount Skydance must pause its US$110 billion (S$142 billion) acquisition of Warner Bros. Discovery through Aug 17, a federal judge ruled on July 23.

The move gives Paramount Skydance more time to argue against a potential months-long pause while the case plays out. The company has said such a prolonged delay would plunge the deal into uncertainty and could cost it more than US$1 billion.

A California-led coalition of states have sued to block the deal, saying it would harm competition in film and television, hurting theaters and cable companies. The Writers Guild of America has filed a separate lawsuit alleging the deal would decrease demand for screenwriting work.

US District Judge Araceli Martinez-Olguin in Oakland, California, previously paused the deal through Aug 3, when she would have held a hearing on whether to postpone the deal’s closing for longer.

Paramount has asked for a three-day hearing in August where it can present evidence the deal bolsters competition before the judge decides on a longer pause. REUTERS