TRENTON, N.J. — New Jersey Attorney General Jennifer Davenport announced Friday that a coalition of states has secured a temporary pause in the proposed merger between Paramount and Warner Bros., marking an early victory in a lawsuit that argues the deal would reduce competition and increase costs for consumers.
The announcement comes as Paramount is making one of its largest investments in New Jersey through its long-term commitment to the under-construction 1888 Studios campus in Bayonne, a project expected to become one of the East Coast’s largest film production facilities.
“Thanks to our lawsuit, Paramount and Warner Bros. are backing down and putting their merger on hold,” Davenport wrote on social media. “We won’t let corporate monopolists profit at your expense—driving up prices and reducing your entertainment choices.”
Gov. Mikie Sherrill’s administration joined the multistate antitrust challenge, which was filed by a coalition of 12 state attorneys general seeking to block the transaction.
Federal judge pauses merger
According to the lawsuit, the states argue the proposed merger would substantially reduce competition throughout the entertainment industry, affecting movie theaters, cable providers and consumers.
The coalition contends combining two of the nation’s largest entertainment companies could lead to higher prices, fewer viewing options and diminished competition in television and film distribution.
A federal judge granted a temporary restraining order, putting the merger on hold for at least two weeks while the court considers the states’ request for additional relief.
Paramount has defended the proposed transaction, arguing the lawsuit misapplies antitrust law and that the merger would strengthen its ability to compete against larger technology and streaming companies.
Bayonne studio investment remains unchanged
Despite the legal battle, neither New Jersey officials nor Paramount have indicated that the litigation will affect the company’s substantial investment in Bayonne.
Paramount remains an official Studio Partner at 1888 Studios, a designation awarded through the New Jersey Economic Development Authority that provides enhanced state film production tax incentives.
Under its agreement, Paramount has signed a 10-year anchor lease for more than 285,000 square feet at the campus.
The lease includes:
- Five of the project’s 23 planned smart soundstages.
- Production offices.
- Support facilities.
- Long-term operational space.
The larger 1888 Studios development spans approximately 58 acres and represents an investment estimated at $1 billion. When completed, the campus is expected to encompass between 1.1 million and 1.5 million square feet of production space.
Construction is already underway, with initial phases progressing and full operations anticipated between 2027 and 2028.
Paramount expanding footprint in Bayonne
Beyond the 1888 Studios campus, Paramount has also begun pursuing an additional production presence in Bayonne.
The company has initiated local approvals to rezone the former Seahorse/Link Logistics warehouse at 69-73 LeFante Way, where it is seeking to establish another film production facility.
The additional site would expand Paramount’s footprint in New Jersey as the state continues attracting major film and television productions through tax incentives and proximity to New York City.
New Jersey continues promoting film industry growth
The Bayonne studio complex has been promoted as a cornerstone of New Jersey’s strategy to expand its film and television production industry.
State officials have projected the development will generate union construction jobs, permanent production employment and increased economic activity while providing large-scale soundstage capacity capable of attracting major studio productions.
Neither the Attorney General’s Office nor the Governor’s Office has indicated whether the ongoing antitrust litigation could alter Paramount’s commitments under its lease agreement or affect the construction timeline for the Bayonne project.
Why it matters
The temporary court order represents an early procedural victory for New Jersey and the coalition of states seeking to block the Paramount-Warner Bros. merger on antitrust grounds. However, the litigation also involves one of the companies making one of the state’s largest film industry investments.
For now, there is no public indication that the lawsuit has affected Paramount’s planned expansion in Bayonne. Construction at 1888 Studios continues, and the company remains committed to its long-term lease at the NJEDA-backed production campus while the merger challenge proceeds through federal court.
