A major media merger approved by the Trump administration hit another standstill, according to The New York Times.
On Friday, Paramount said that it agreed to halt its $111 billion merger with Warner Bros., which would bring the movie studio and its programs, including CNN, under the control of MAGA-friendly David Ellison, The Times reported.
The Department of Justice greenlit the industry-shaking deal in June. The Trump administration had leverage over Ellison, the Paramount Skydance CEO, while he awaited the DOJ's approval. During that wait, Ellison transformed CBS News and cut "The Late Show" with Stephen Colbert.
However, the deal hit another snag earlier this month with a lawsuit by a dozen state attorneys general, including California AG Rob Bonta, to stop the deal on antitrust grounds.
A judge paused the merger earlier this week in response to the lawsuit, but the agreement by Paramount on Friday entails halting the merger until next June, a lengthy standstill that "could be costly for Paramount," the Times wrote. New York Attorney General Letitia James called the freeze a "crucial victory" in a statement.
"From the workers and artists who bring stories to life to the families who buy tickets at the box office, Paramount's illegal takeover of Warner Bros. is a bad deal for all those who count on a competitive entertainment industry," James said, per the Times.
However, Paramount also described the halt as a "significant win" because it gives the company "a direct path to a trial based on the evidence," a spokesperson told the Times. "This is the fastest and clearest way to prove that this transaction is good for competition, good for consumers, and good for creators."
