Judge temporarily blocks $110B Paramount-Warner Bros. Discovery merger
A U.S. federal judge has temporarily blocked Paramount Skydance Corporation's proposed $110 billion acquisition of Warner Bros. Discovery, ruling that a coalition of 12 states raised serious antitrust concerns that warrant preserving the status quo while the case proceeds, Qazinform News Agency correspondent reports.
Judge Araceli Martínez-Olguín of the U.S. District Court for the Northern District of California granted a temporary restraining order preventing the companies from completing the transaction or taking any steps to integrate their operations. The order, issued on July 20, will remain in effect for 14 days while the court considers a request for a preliminary injunction.
The lawsuit was filed by the attorneys general of California, Arizona, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon and Washington. The states argue that the merger would unlawfully reduce competition by combining two of Hollywood's five major film studios and two of the country's largest cable television programmers.
Under the deal announced on Feb. 27, 2026, Paramount would acquire all outstanding Warner Bros. Discovery shares for $31 per share, valuing the transaction at about $110 billion. The combined company would own Paramount Pictures and Warner Bros. Pictures, the CBS broadcast network, HBO and Showtime premium channels, more than 50 basic cable networks, and streaming platforms including Paramount+, HBO Max and Discovery+.
In her ruling, the judge said the plaintiff states had shown serious questions about whether the transaction could substantially lessen competition, particularly in the market for wide-release theatrical film distribution. The court also found that allowing the merger to close before a full hearing could cause irreparable harm because it would be difficult to reverse any integration of the companies if the deal were later found unlawful.
The court said preserving competition and maintaining the possibility of effective legal relief outweighed any short-term harm to the companies. It noted that Paramount and Warner Bros. Discovery would continue operating as separate businesses while the case is considered.
The court ordered the states to file their motion for a preliminary injunction by July 23, with Warner Bros. Discovery and Paramount due to respond by July 27. A hearing is scheduled for Aug. 3, although the parties may agree to extend the schedule if the temporary restraining order remains in effect.
Earlier, Qazinform News Agency reported that Paramount Skydance planned to combine Paramount+ and HBO Max into a single streaming service following the proposed $110 billion acquisition.