A federal judge in Northern California has granted a temporary restraining order, halting the merger of Paramount Skydance and Warner Bros. Discovery until an August hearing.
The ruling was made by U.S. District Judge Araceli Martinez-Olguin, who paused the merger for exactly two weeks until the hearing on the attorneys' general preliminary injunction motion on August 3.
The state attorneys general, led by California Attorney General Rob Bonta, filed a lawsuit to block the $110 billion merger, arguing that it would "extinguish competition between Paramount and Warner Bros. and inflict substantial harm on movie theatres, basic cable distributors, and, ultimately, audiences nationwide."
The attorneys general argue that the merger violates Section 7 of the Clayton Act, which bans mergers and acquisitions that "substantially lessen competition" within an industry or create a monopoly.
According to the ruling, the court "finds the public interest favors" the plaintiffs' request for a TRO because the states "raise serious questions on the merits of their Clayton Act claim and because the balance of equities and public interest tip sharply in favor of the Plaintiff States."
A spokesperson for Paramount stated that the order simply preserves the status quo as the court deliberates on the litigation, saying the company is "grateful for the Court's swift order."
The merger has been heavily scrutinized, with several countries still awaiting regulatory approval. However, the Trump administration's Justice Department and several other countries have already granted regulatory approval for the merger.
The merger has been a point of controversy, with Democrats highlighting the close ties between Paramount CEO David Ellison and President Donald Trump.
