Judge Puts HBO Max-Paramount+ Deal on Hold

A planned combination of HBO Max and Paramount+ may be off track. A federal judge has issued a temporary restraining order blocking Paramount from completing its proposed acquisition of Warner Bros Discovery, the deal announced in March after Netflix exited the bidding.

Under the plan, Paramount would acquire Warner Bros Discovery and fold HBO Max and Paramount+ into a single streaming service. Executives had not said how that product would be priced or what it would be called. But Paramount CEO David Ellison said he did not want to weaken the HBO name.

“HBO should stay HBO.”

According to a person familiar with Paramount’s plans, HBO was expected to remain as a sub-brand inside the larger service.

Opposition to the merger has focused on competition. Some viewers worried that combining the platforms could mean higher prices, and a coalition of 12 state attorneys general asked a federal court to step in. NBC News reported that the request was granted.

Recommended reading

Judge Pauses Paramount’s $111B WBD Deal

U.S. District Judge Araceli Martínez-Olguín of the Northern District of California issued the order, which bars Paramount from closing the transaction for 14 days while arguments are heard. The judge’s order targets a tie-up that would place two movie studios, two streaming platforms, and two news organizations under David Ellison, son of billionaire technology executive Larry Ellison.

The legal fight is only one obstacle. The merger is also under review by the European Union and the UK government, while the Writers Guild of America has filed an antitrust lawsuit arguing that the deal would lead to fewer jobs and lower pay.