U.S. Judge Halts Paramount‑Warner Bros. Merger
On July 20‑21, 2026, U.S. District Judge Araceli Martínez‑Olguín in Oakland issued a temporary restraining order that pauses the $110‑111 billion acquisition of Warner Bros. Discovery by Paramount Skydance Corp. The order, initially for 14 days and potentially extendable to 28, blocks both companies from completing the transaction or integrating operations.
The injunction follows a lawsuit filed by a coalition of 12 state attorneys general, led by California, alleging that the merger would violate federal antitrust law, create a media behemoth that could raise prices for film and television, reduce competition, and lead to layoffs. The judge noted that the states “present solid evidence that the transaction would substantially weaken competition” and that the public interest favors a pause while the merits are examined. A hearing on a preliminary injunction is set for August 3.
If the deal is delayed beyond September 30, the merger agreement requires Paramount to pay a “ticking fee” of roughly $7 million per day to Warner Bros. Discovery shareholders. The Department of Justice had previously approved the deal, but the states’ challenge keeps the outcome uncertain pending further court review.