OAKLAND — A federal judge has temporarily blocked Paramount Skydance Corp.’s proposed acquisition of Warner Bros. Discovery, granting a restraining order sought by 12 U.S. states challenging the roughly $110 billion media merger on antitrust grounds.
U.S. District Judge Araceli Martínez-Olguín of the Northern District of California issued the order on July 20, barring the companies from completing the transaction or consolidating their operations while the court considers the states’ broader challenge. The temporary restraining order is set to remain in effect for 14 days, with a hearing scheduled for Aug. 3 on the states’ request for a preliminary injunction.
The states, led by California Attorney General Rob Bonta, argue that the proposed combination would eliminate competition between two of Hollywood’s five major film studios and unite two significant owners of basic cable networks. The lawsuit alleges the deal would harm competition in theatrical film distribution and cable television programming.
In her ruling, Martínez-Olguín said the states had presented evidence indicating that the combined company would hold a substantial share of the market for wide-release theatrical distribution. She wrote that, based on the combined market share alone, the court could presume the proposed transaction was likely to violate U.S. antitrust laws.
The companies have opposed the states’ request, setting up a legal battle over whether the merger can proceed. The proposed transaction would bring together Paramount and Warner Bros. film studios as well as major television and streaming assets, including CBS, CNN, HBO Max and Paramount+, according to reporting on the deal.
The court’s order represents a temporary halt rather than a final ruling on the legality of the merger. The states must now pursue a preliminary injunction if they seek to keep the transaction blocked while the antitrust case proceeds.
The next major development is the Aug. 3 hearing, when the court is scheduled to consider whether to impose a longer-term injunction pending further litigation.
