Judge Halts $110 Billion Paramount and Warner Bros. Merger

U.S. District Judge Araceli Martínez-Olguín issued a 14-day temporary restraining order on July 20, 2026, freezing the acquisition of Warner Bros. Discovery by Paramount Skydance. The deal, valued at approximately $110 billion, was paused following a lawsuit filed on July 13 by a coalition of 12 states led by California Attorney General Rob Bonta. The plaintiffs argue the merger violates the Clayton Antitrust Act by creating a media behemoth that would control roughly 27% of the wide-release theatrical distribution market and 25% of the basic cable ecosystem.

Opposition expanded on July 22 when the Writers Guild of America filed its own motion for a preliminary injunction, claiming the merger is "presumptively illegal" and would suppress compensation for writers. Additionally, the Los Angeles County Board of Supervisors voted to support the state lawsuit, citing a report that predicts the loss of 2,500 local entertainment jobs.

Despite the U.S. legal deadlock, the European Commission granted conditional antitrust approval on July 23. To secure the deal, Paramount agreed to dissolve its United International Pictures joint venture with Universal Pictures and avoid new European distribution deals with Universal for 10 years.

Paramount has requested an accelerated evidentiary hearing to avoid a September 30 deadline. If the merger does not close by that date, CEO David Ellison faces a "ticking fee" penalty of approximately $7 million per day owed to Warner Bros. Discovery shareholders. A hearing for a preliminary injunction is scheduled for August 3 in Oakland, California.