Paramount Merger Gets Further Delayed, And Things Could Get Expensive

Just as Larry Ellison and Paramount executives had worried, the state antitrust challenge to their $111 billion merger with Warner Brothers has resulted in significant delays that could prove terminal. Two weeks ago California and eleven other states filed an antitrust lawsuit to block the merger, pointing out that the consolidation would undermine market competition, resulting in mass layoffs, higher consumer prices, and product quality hits as the merged company attempts to pay down a massive debt load. This isn’t hard to predict or prove given that every single merger that Warner Brothers has been involved with in the last quarter century has been a disastrous dud. The judge overseeing the case granted a 14-day restraining order...

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