Paramount–Warner Bros. Discovery Merger Blocked by US Judge

A U.S. federal judge, Araceli Martinez‑Olguin, issued a 14‑day temporary restraining order on July 22 that halts Paramount Skydance’s proposed $110‑$111 billion acquisition of Warner Bros. Discovery. The order follows a lawsuit filed by a coalition of 12 state attorneys general, led by California and New York, alleging that the merger would violate federal antitrust law by creating a media giant with roughly 27 % of theatrical‑distribution market share and over 30 % of the blockbuster segment, threatening higher prices, fewer choices, job losses and reduced news‑media diversity. The court barred any direct or indirect steps to integrate the companies for at least two weeks and set a hearing on a possible preliminary injunction for August 3, with the possibility of extending the pause to 28 days. California Attorney General Rob Bonta called the ruling “a critical first win.” Paramount argues the deal would improve competition against streaming rivals, while the states contend it would consolidate excessive market power. The companies also face daily financial penalties if the transaction is not completed by September 30.