Executives involved in the pending Paramount–Warner Bros. Discovery deal expect that a judge will hit pause on the takeover plan in the coming days. The delay is due to a lawsuit from 12 state attorneys general who are seeking a temporary restraining order (TRO) to prevent the companies from completing the merger while the legal process is underway.

Background of the Deal

The states filed a lawsuit on Monday charging that the merger would violate antitrust law and must be stopped. The suit created additional uncertainty about the future ownership of CNN and other assets owned by Warner Bros. Discovery (WBD). Paramount has said it anticipates completing the merger by the end of September.

Behind the scenes, Paramount aimed for July, believing that all the necessary approvals might be in place by now. The company noted in a recent statement that numerous antitrust authorities around the world have already signed off, concluding that this transaction creates a stronger competitor against dominant streaming and technology platforms.

Challenges Ahead

Some of the 12 state attorneys general have questioned whether the swift DOJ approval was the result of President Donald Trump’s cozy relationship with the family that owns Paramount. The states have said that they are bringing antitrust lawsuits on behalf of consumers because the federal government is failing to do so.

A separate consumer lawsuit against the deal, filed on behalf of Paramount+ subscribers, is also winding its way through the courts, and the two cases will now be linked. The Writers Guild of America also filed suit in the Northern District of California, arguing that the merger would hurt its members by shrinking the number of Hollywood buyers for TV shows and movies.

Original reporting: KRDO (Colorado Springs metro) — read the source article.