A United States federal court has issued a temporary restraining order halting the proposed merger between Paramount and Warner Bros. Discovery. The order follows an antitrust lawsuit filed by 12 states seeking to block the transaction due to market competition concerns.
District Judge Araceli Martínez-Olguín of the Northern District of California signed the order prohibiting Paramount from completing the acquisition for at least 14 days. The court has scheduled a hearing for August 3 to determine whether to issue a preliminary injunction that would block the deal pending a full trial.
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Led by California, the coalition of state attorneys general argues that the transaction—valuing Warner Bros. Discovery at $110 billion including debt—threatens free competition and harms consumers. The states moved for immediate judicial intervention after both companies declined to voluntarily pause the closing process.
California Attorney General Rob Bonta welcomed the court’s decision, calling it a crucial initial victory in preventing a megamerger that could consolidate market power and reduce options for consumers. While Paramount did not issue an immediate statement on the ruling, the company has previously indicated its intent to vigorously defend the transaction in court.
