U.S. Judge Extends Block on Paramount‑Warner Bros. Discovery Merger to Mid‑August

U.S. District Judge Araceli Martínez‑Olguín granted an extension of the existing 14‑day restraining order, adding another 14 days and keeping the $110‑$111 billion Paramount‑Skydance acquisition of Warner Bros. Discovery halted until at least 17 August. The extension follows antitrust lawsuits filed by a coalition of 12 state attorneys general, led by California, which argue the deal would lessen competition in basic cable and theatrical distribution, and a separate challenge by the Writers Guild of America alleging harms to writers’ pay and content diversity. A hearing is scheduled for 3 August to consider a preliminary injunction that could block the merger indefinitely.

The European Commission has conditionally approved the same merger, imposing requirements that Paramount exit the United International Pictures joint venture and adhere to distribution safeguards in the European Economic Area. The U.S. court delay adds financial uncertainty, with Paramount warning that the prolonged suspension could cost the company over $1 billion in penalties and delayed payments to Warner shareholders.