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Court orders Paramount to pause Warner Bros deal
['James Warrington', 'July', 'Min Read']
Yahoo Finance
Lawsuit warns Paramount's planned takeover of Warner Bros risks inflicting 'substantial harm' on cinemas - Justin Sullivan/Getty ImagesA US court has ordered Paramount to pause its $110bn (£82bn) takeover of Warner Bros after a dozen states launched a legal effort to block the deal.
District Judge Araceli Martinez-Olguin said the states had presented "compelling evidence" that the merger is likely to be in violation of competition laws.
The court will now consider a preliminary injunction, which would prevent the deal from closing until the lawsuit concludes.
The lawsuit, filed last week, warned that Paramount's planned takeover of Warner Bros would inflict "substantial harm" on cinemas, cable TV operators and audiences.
The legal action, which is being brought by states including Arizona, Massachusetts, New York and Washington, poses a major threat to Paramount's planned deal.