The proposed $81 billion merger between Paramount and Warner Bros. Discovery has hit a legal roadblock after a federal judge ordered the companies to temporarily halt the deal while a coalition of states pursues an antitrust challenge.
On Monday, U.S. District Judge Araceli Martínez-Olguín granted a temporary restraining order preventing the merger from closing for at least 14 days. The ruling follows a lawsuit filed last week by California and 11 other states, which argue the combination would significantly reduce competition across the entertainment industry.
The states contend the merger would consolidate two of Hollywood’s remaining legacy studios, potentially leading to fewer choices for consumers, reduced competition in theatrical distribution and streaming, and greater market power over film, television and news.
“This is a critical first win in our case to ensure this megamerger never sees the light of day,” California Attorney General Rob Bonta said in a statement following the ruling.
If completed, the merger would unite Warner Bros. Discovery’s portfolio, including HBO Max, CNN and franchises such as Harry Potter, with Paramount’s assets, including Paramount+, CBS, Nickelodeon and film properties like Top Gun and Mission: Impossible.
REELated:
Paramount-Warner Bros. merger faces multiple lawsuits
Paramount has previously defended the transaction, arguing that the combined company would be better positioned to compete with larger global entertainment companies. The studio has called the states’ lawsuit “wrong on both the facts and the law” and has pledged to vigorously defend the acquisition. The merger previously received regulatory approval from the Trump administration.
The temporary restraining order gives the court time to consider whether to issue a preliminary injunction that would block the merger while litigation proceeds. A hearing on that request is currently scheduled for Aug. 3, although that date could change.
The ruling introduces fresh uncertainty into what would become one of the largest media mergers in recent history, with potentially significant implications for the future of streaming, theatrical distribution, television networks and news operations.
