A coalition of 12 US states led by California has secured a temporary pause on Paramount Skydance's acquisition of Warner Bros Discovery, the parent company of New Line Cinema and CNN. The states allege the merger would harm competition.

US District Judge Araceli Martinez-Olguin gave the states 14 days to argue the merits of their lawsuit, filed last Monday. A final ruling could take months, with a hearing scheduled for August 3.

The lawsuit claims the merger would reduce content available to consumers and lead to mass layoffs. Under the deal's terms, Paramount would pay $650 million per quarter in ticking fees if delayed, plus a daily fee of about $7 million.

The deal has faced scrutiny from Hollywood and Washington over fears of job cuts and reduced consumer choice. Bringing CBS News and CNN under one roof could reshape the news landscape.

Concerns exist that Paramount's Larry Ellison, a close ally of President Donald Trump, and his son David may implement changes at CNN similar to those at CBS, including hiring right-wing commentator Bari Weiss. This has prompted some top talent, like Anderson Cooper, to consider leaving.

Media freedom experts warn the merger would reduce access to diverse viewpoints. NYU professor Rodney Benson called it a dangerous precedent that favors media owners willing to generate news favorable to the US president.

The Writers Guild of America also filed a lawsuit last week to block the merger. Paramount Skydance declined to comment. On Wall Street, shares briefly fell but recovered, while Warner Bros Discovery stock dropped 3.8%.

Source: www.aljazeera.com