Federal Judge Halts $110 Billion Paramount–Warner Bros. Discovery Merger

Federal Judge Halts $110 Billion Paramount–Warner Bros. Discovery Merger

A federal judge in Oakland, California, issued a 14-day temporary restraining order blocking Paramount Skydance's $110 billion acquisition of Warner Bros. Discovery, after a coalition of 12 state attorneys general (led by California's Rob Bonta) sued on antitrust grounds. 

Judge Araceli Martínez-Olguín ruled the states presented compelling evidence the combined company would hold outsized market share in wide-release theatrical distribution, saying the merger likely violates antitrust law. A hearing on a longer-term injunction is set for August 3. 

The deal would unite two major film studios, streaming services (Paramount+ and HBO Max), and news organizations (CBS and CNN) under Paramount CEO David Ellison. Paramount called the states' arguments "without merit," insisting the merger is "lawful, pro-competitive" and benefits consumers and workers. 

The states counter it would harm movie theaters, cable distributors, and audiences by reducing competition. The delay carries real financial stakes: Paramount agreed to pay Warner Bros. shareholders a "ticking fee" of 25 cents per share each quarter if the deal isn't closed by September 30 — worth over $600 million per quarter — adding pressure to resolve the legal fight quickly. 

Some critics have also flagged the deal's political dimensions, given Ellison's ties to the Trump administration, though the current legal challenge centers strictly on antitrust concerns rather than politics.