A federal judge on Monday temporarily halted Paramount Skydance’s proposed acquisition of Warner Bros. Discovery, handing a coalition of 12 states an early victory in its effort to block one of the largest media mergers in U.S. history.
U.S. District Judge Araceli Martínez-Olguín issued a temporary restraining order preventing Paramount from completing the roughly $110 billion deal while the court considers whether to impose a longer preliminary injunction. The order does not permanently kill the acquisition, but it stops the companies from closing the transaction for now.
States challenge merger on antitrust grounds
California Attorney General Rob Bonta is leading the group of state attorneys general seeking to block the deal. Their lawsuit argues that combining Paramount and Warner Bros. Discovery would reduce competition in the film and cable television industries in violation of federal antitrust law.
The states contend that the merged company would gain excessive control over wide theatrical releases, big-budget films, and cable television networks. They warn the consolidation could result in higher prices, fewer choices for consumers, and greater leverage over theaters and television distributors.
The coalition includes Democratic attorneys general from 12 states. They are seeking to stop the acquisition entirely, not merely delay its completion.
Paramount promises to fight ruling
Paramount has rejected the states’ claims, describing the lawsuit as a flawed application of antitrust law and promising to vigorously defend the transaction.
The company argues that acquiring Warner Bros. Discovery would create a stronger competitor to Netflix and other technology-driven streaming giants. The combined company would control Paramount Pictures and Warner Bros. Studios, along with HBO Max, Paramount+, and Pluto TV.
Its television portfolio would also include CBS, CNN, HBO, TBS, and Nickelodeon.
Paramount’s attorneys have disputed the market-share figures cited by the states and argued that the entertainment industry remains open to new competitors and independent productions.
Trump administration approved deal
The ruling comes after President Donald Trump’s Justice Department approved the acquisition in June, clearing a major federal regulatory obstacle.
That approval did not prevent individual states or private groups from challenging the merger in court. The Writers Guild of America has filed a separate lawsuit arguing that the transaction would reduce employment opportunities, weaken writers’ bargaining power, and lead to fewer television and film productions.
Regulators in the United Kingdom and European Union are also continuing to review the proposed acquisition.
Longer delay remains possible
Martínez-Olguín will next determine whether to issue a preliminary injunction that could keep the merger frozen while the states’ broader antitrust case proceeds.
Such a ruling could delay the acquisition for months and increase the financial and legal pressure on both companies. Either side could appeal the court’s eventual decision.
Paramount and Warner Bros. Discovery had aimed to complete the transaction during the third quarter of 2026. That timetable is now uncertain.
This is a breaking news story. Please check back for updates.
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