Paramount-Warner Bros. Discovery Merger Blocked by US Judge

U.S. District Judge Araceli Martínez‑Olguín issued a 14‑day temporary restraining order halting Paramount Skydance Corp's $110 billion acquisition of Warner Bros. Discovery. The order follows a lawsuit filed by a coalition of twelve state attorneys general, led by California, alleging the merger would give the combined company outsized market power in theatrical film distribution and cable‑television licensing, potentially raising prices for consumers and harming competition.

The states argue that the merged entity would dominate wide‑release movie markets and could dictate terms to theaters and cable operators. In addition, the Writers Guild of America filed its own preliminary injunction request, contending the deal would eliminate head‑to‑head competition for screenwriters and depress wages. A hearing on the states' request for a preliminary injunction is scheduled for August 3, with the possibility of extending the restraining order up to 28 days. If the transaction fails to close by the September 30 deadline, Paramount faces daily penalties payable to Warner Bros. Discovery shareholders. The merger would unite Paramount Pictures, CBS, MTV, CNN and streaming service Paramount+ with Warner’s studios, HBO Max and other assets, creating a dominant media conglomerate pending the court's decision.