A federal judge stopped Paramount Skydance from closing its roughly $110 billion buyout of Warner Bros. Discovery this week, granting a 14-day pause after a coalition of states sued to block the deal on antitrust grounds.
U.S. District Judge Araceli Martínez-Olguín issued the temporary restraining order Monday, days before Paramount had hoped to seal what would be the largest media merger in Hollywood history.
“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,” said California Attorney General Rob Bonta, who leads the 12-state coalition challenging the deal.
Movieguide® has tracked this merger since talks first surfaced in late 2023, and the stakes for families who love the movies keep climbing. Fewer studios competing for screen time and shelf space tends to mean fewer options at the theater, not more, which is why Movieguide® previously laid out what moviegoers need to know about the acquisition back when the states first sued.
The proposed combination is enormous by any measure. It would fold Paramount Pictures and Warner Bros. together under one roof, along with CBS, CNN, HBO Max, Paramount+ and dozens of cable channels including MTV, BET, TNT and CNN’s news operation. Twelve states, led by California and joined by New York, Washington, Oregon and others, argue the deal would let one company dominate wide-release theatrical distribution and basic cable licensing, according to a lawsuit filed July 13 in the Northern District of California.
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The states claim a combined Paramount-Warner would control more than 30% of the market for the biggest theatrical releases, and that four major studios together would hold over 90% of that same market once the deal closes. Judge Martínez-Olguín found that argument persuasive enough on its own to justify pausing the transaction, writing that the states presented what Deadline described as “compelling evidence” of substantial market concentration.
Paramount disputes that framing entirely. A company spokesperson said in a statement that the studio remains confident the antitrust arguments “are without merit” and insists the merger is lawful and pro-competitive, arguing it will actually help Paramount and Warner Bros. compete against streaming giants like Netflix and Amazon.
“The balance of equities, combined with the public’s vital interest in antitrust enforcement, therefore tips sharply in favor of the requested injunctive relief,” the judge wrote in her order, according to Deadline. The order bars Paramount and Warner Bros. from taking any steps to integrate their operations while the case proceeds.
The temporary restraining order lasts just 14 days, though it could stretch to 28 if both sides agree to a scheduling change. Judge Martínez-Olguín has already set a hearing on the states’ request for a longer-term preliminary injunction for Aug. 3, which will determine whether the merger stays frozen well beyond that.
Paramount has said it hopes to have the matter resolved by the end of September, since the company faces a $7 million-per-day penalty owed to Warner Bros. Discovery shareholders if the deal doesn’t close by Sept. 30. The Writers Guild of America has also filed its own separate lawsuit against the merger, arguing it would shrink opportunities for screenwriters, so Paramount isn’t just fighting state prosecutors in this one.
Movieguide® will keep watching this case as it heads toward its August court date.
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