NEW YORK — A federal judge on Monday temporarily stopped Paramount and Warner Bros. Discovery from moving ahead with their proposed $81 billion merger, giving a coalition of states at least two more weeks to press their antitrust challenge in court.
The legal fight began last week when 12 states, with California taking the lead, filed suit to block Paramount’s planned acquisition of Warner. The states argue the blockbuster entertainment merger would “extinguish competition” in Hollywood, shrinking options for consumers nationwide — especially movie audiences and cable TV subscribers.
Attorneys general from the states had urged Paramount and Warner not to finalize the deal before a court could “fully evaluate” their claims. After the companies declined to wait, the states sought a temporary restraining order. District Judge Araceli Martínez-Olguín granted that request Monday, setting the stage for a possible preliminary injunction that could more forcefully derail the merger.
California Attorney General Rob Bonta hailed the ruling as an important early victory. “This is a critical first win in our case to ensure this megamerger never sees the light of day,” he said in a statement after the order. “History tells the tale of what happens when a few people have great power over markets that are central to Americans’ lives: fewer opportunities for more people, worse products and services for all people.”
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If completed, a Warner-Paramount merger would unite two of Hollywood’s remaining five legacy studios and combine a vast portfolio of television networks, streaming platforms, film franchises and news assets. The combined company would bring Warner’s HBO Max, properties such as “Harry Potter” and CNN together with Paramount’s CBS, “Top Gun” films and Paramount+ streaming service.
Paramount did not immediately respond to Monday’s order. The company, acquired by Skydance last year, has said it will “vigorously defend” the Warner deal. Paramount has previously dismissed the states’ lawsuit as “wrong on both the facts and the law,” arguing that the merger would help it compete more effectively against larger media and entertainment rivals. The company has also pointed to regulatory approvals the transaction has secured elsewhere, including clearance from President Donald Trump’s administration last month.
The temporary restraining order issued Monday pauses the transaction for at least 14 days, though the freeze could be extended to as long as 28 days. A hearing on the states’ request for a preliminary injunction is currently scheduled for Aug. 3, but that timeline may still change.
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