A federal judge has ordered Paramount and Warner Bros Discovery to pause their planned $81 billion merger for at least two weeks.
US District Judge Araceli Martínez-Olguín issued a temporary restraining order on Monday after twelve states filed an antitrust lawsuit to block the deal.
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The lawsuit, led by California Attorney General Rob Bonta, argues that the merger would reduce competition in Hollywood, leading to fewer choices for moviegoers and cable subscribers.
The order halts the transaction for 14 days, with a possible extension of up to 28 days.
California Attorney General Rob Bonta called the ruling a significant victory for consumer protections.
“This is a critical first win in our case to ensure this megamerger never sees the light of day,” Bonta said.
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He warned that market consolidation often results in fewer opportunities and worse products for consumers.
The merger would combine major studios, TV networks, news divisions, and streaming services under one umbrella, including CBS, CNN, HBO Max, Paramount+, and franchises like Top Gun and Harry Potter.
Paramount, acquired by Skydance last year, did not immediately comment but has previously pledged to fight the lawsuit, calling it legally flawed.
The company argues the merger enhances competition against larger rivals and notes prior regulatory approvals, including from the Trump administration.
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A federal hearing on a preliminary injunction is scheduled for August 3, though the date may change.
