PSKY

California's attorney general ignores the reality of competition in the entertainment business.

The Paramount-WBD deal is on pause ahead of a pivotal trial. Even if Paramount wins, CEO David Ellison's dream of forming a Hollywood superpower will be delayed for months.

A federal judge temporarily paused Paramount Skydance's $110 billion takeover of Warner Bros. Discovery US District Judge Araceli Martínez-Olguín in Oakland on Monday ordered the companies to hold off on consummating the deal for 14 days.

"Let me be clear: we remain highly confident that this transaction does not pose any legal issues, and we will complete it and bring these two companies together," Ellison said.

Actors Benedict Cumberbatch, Alan Cumming and Benedict Wong have penned an op-ed in The Guardian calling for the U.K. to block the Paramount–Warner Bros. merger, arguing “would harm our workers, our culture and the public.

The companies can't combine yet, meaning promised cost savings and strategic moves are on hold while rivals push ahead.

Washington cleared the deal. A California court paused it.

It means nothing for the availability of entertainment, but it does have one meaningful effect.

“Today's agreement is a significant win because the result is exactly what we have sought from the outset: a direct path to a trial based on the evidence,” a Paramount spokesperson told multiple outlets. “This is the fastest and clearest way to prove that this transaction is good for competition, good for consumers, and good for creators, a conclusion dozens of competition authorities around the world have already reached.

The delay could cost Paramount Skydance around $7 million a day in fees it agreed to pay Warner Bros. shareholders if the merger does not close by Sept.