Paramount Skydance’s $110B merger with Warner Bros. Discovery paused by judge

A federal judge on Monday paused Paramount Skydance’s $110 billion merger with Warner Bros. Discovery — a deal that has promised to reshape Hollywood and the TV news industry — in response to an antitrust lawsuit brought by 12 Democratic state attorneys general last week.

U.S. District Judge Araceli Martínez-Olguín granted the states’ request for a temporary restraining order, finding that they raised serious questions about the anticompetitive nature of the deal.

If the merger closes, it would combine the Paramount and Warner Bros. studios, the TV giants CNN and CBS, and streaming services HBO Max and Paramount+.

In a statement after the ruling, California Attorney General Rob Bonta called the decision a “critical first win in our case to ensure this megamerger never sees the light of day.” California is the lead plaintiff in the case.

“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,” he said.

Paramount Skydance said in a statement that it is “confident the evidence will demonstrate that the State AGs’ antitrust arguments are without merit as their alleged markets and claims of anticompetitive effects are without any basis in modern market realities.”

“This merger is lawful, pro-competitive, and will benefit consumers, creators, workers, and the entertainment industry,” the statement added. “We will continue to vigorously defend the transaction and will look forward to the hearings on the substance of the State AGs’ action.”

The emergency ruling, pausing the merger for 14 days, comes after a Friday hearing in which California’s attorneys presented their case for the first time. The judge asked the parties to reconvene in court on Aug. 3, when she will consider motions for a longer-lasting preliminary injunction.

The states aren’t the only parties trying to get courts to stop the deal.

A group of consumers has sued in federal district court in Northern California, as has the Writers Guild of America, the union representing Hollywood screenwriters and many journalists.

A shareholder lawsuit was separately filed in Delaware’s state chancery court.

British regulators, too, are considering efforts to intervene, although it’s unclear whether they could fully block the deal.

The deal would put David Ellison — son of billionaire Oracle founder Larry Ellison, an ally of President Donald Trump — in charge of one of the most powerful companies in American media.