Judge Issues Temporary Halt to Paramount-Warner $81 Billion Merger
A federal judge granted a temporary restraining order pausing the Paramount Pictures and Warner Bros. Discovery merger for at least two weeks, giving twelve states more time to pursue antitrust challenges.
A U.S. district judge in New York ordered a pause on the proposed $81 billion acquisition of Warner Bros. Discovery by Paramount Pictures, issuing a temporary restraining order that blocks the transaction for a minimum of 14 days. The ruling provides the twelve states that have sued to block the deal, led by California, additional time to advance their antitrust claims in court.
The states allege that combining the two legacy studios would eliminate competition in theatrical film distribution, blockbuster releases and basic-cable programming, potentially allowing the merged entity to control roughly one-third of those markets. They argue the consolidation could raise prices for consumers and suppress wages for workers while reducing the variety and quality of content.
California Attorney General Rob Bonta called the decision a “critical first win” in the effort to stop the merger, while New York Attorney General Letitia James described the transaction as a “political merger” tied to President Donald Trump’s involvement.
Paramount, which was acquired by Skydance last year, contended that the states’ antitrust arguments lack merit and that the merger would benefit consumers and employees. The company also highlighted regulatory approvals it has received in other jurisdictions, including China, Canada and Australia, though reviews continue in the European Union and the United Kingdom.
The court set Aug. 3 for a hearing on the states’ request for a preliminary injunction, which could extend the pause up to 28 days. The companies had sought to complete the deal by the end of August, citing a contractual “ticking-fee” that would cost Paramount about $7 million per day after Sept. 30 if the merger were not closed.
In addition to the state lawsuits, the merger faces separate legal challenges from the Writers Guild of America and a shareholder alleging improper political influence in the deal’s approval process. The Justice Department has said its antitrust review is not political.