Federal Judge Halts $81 Billion Paramount-Warner Merger for At Least Two Weeks

A federal judge in New York granted a temporary restraining order Monday that will prevent Paramount and Warner Bros. Discovery from completing their $81 billion merger for a minimum of two weeks. The decision came after twelve states, spearheaded by California, requested the court pause the transaction to allow their legal challenge to proceed.

California Attorney General Rob Bonta and his counterparts in other states filed suit last week, contending that the proposed combination would eliminate competition among Hollywood’s remaining major studios and ultimately harm consumers through reduced entertainment options and higher prices. The states’ legal teams asked both companies to voluntarily delay closing the deal pending judicial review, but when they declined, prosecutors moved for the temporary restraining order that District Judge Araceli Martínez-Olguín approved Monday.

The restraining order sets the stage for a broader preliminary injunction hearing scheduled for August 3, which could result in a more extensive blockade of the merger. Bonta called Monday’s ruling “a critical first win,” emphasizing that concentrated market power typically produces worse outcomes for consumers across industries essential to American life.

The merger would consolidate two of Hollywood’s five remaining legacy studios, along with multiple television networks, streaming platforms including HBO Max and Paramount+, film franchises such as “Harry Potter” and “Top Gun,” and news operations including CNN. Paramount, acquired by Skydance last year, has pledged to vigorously contest the states’ claims and previously characterized their complaint as legally and factually flawed, arguing instead that the merger would strengthen competition against larger entertainment conglomerates. The company also noted that the Trump administration had already approved the deal.