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A judge in the US has halted a merger worth $110 billion (around 96 billion euros) between two of the largest film studios in the world. The deal by which Paramount wanted to swallow Warner Bros. Discovery has stopped - at least for 14 days - after 12 state attorneys general sued, with an argument we rarely hear this loudly from American institutions: that this merger harms competition, the cinema and the public.
Judge Araceli Martinez-Olguin issued the pause on Monday, after hearing both sides. The coalition of prosecutors, led by California attorney general Rob Bonta, can request another pause when these two weeks run out - which means the deal could drag on for months.
What would this merger create? A fusion of two film empires and two streaming platforms - Paramount+ and HBO Max. Under one roof you would end up with CBS and MTV on one side, and CNN and HBO on the other. A portfolio of television networks the world has rarely seen under a single name. And this is exactly where the prosecutors point the finger: fewer owners of what we watch every evening means less choice, worse service and higher prices for everyone.
„This is a crucial first win in our case to ensure this mega-deal never sees the light of day," said prosecutor Bonta. „History tells us what happens when a handful hold great power over markets that are central to people's lives: fewer options for more people, worse products and services for everyone." Paramount, of course, claims the opposite - that the merger is legal, pro-competitive and will benefit consumers. Every studio that wants to swallow a competitor says the same thing.
The bigger picture is familiar to anyone who follows the entertainment industry. Netflix made everyone run, and now the old studios are trying to fuse into a single block large enough to strike back. Paramount's CEO had promised the deal would close by September. Instead, he got a court brake. The question that remains is whether the institutions will really stand on the public's side - or whether this is just a 14-day pause before power imposes its will again.
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