US District Judge Araceli Martínez‑Olguín has issued a temporary restraining order that halts the proposed $110 billion merger between Paramount Skydance and Warner Bros Discovery. The order follows a lawsuit brought by a coalition of 12 states, including California and New York, that argues the combine would stifle competition and raise consumer prices.
The states contend that merging two of the industry’s biggest studios would inflict “substantial harm on movie theatres, basic cable distributors and, ultimately, audiences nationwide.” Paramount and Warner Bros counter that the merger would boost streaming efficiency and enhance their global reach.
Under the 14‑day injunction, neither company can finalize the deal or commence integration. The judge cautioned that allowing the merger to proceed now would make it “extraordinarily difficult to unscramble the egg” if the court later decided against it.
Judge Martínez‑Olguín emphasised that the public’s vital interest in antitrust enforcement outweighs any temporary delay to the merger. She ruled the companies must remain separate and competitive during further litigation.
The proposed deal, which would combine iconic franchises such as Harry Potter, Batman, Mission: Impossible and Top Gun with channels like CNN, MTV and Nickelodeon, would give the new entity control over more than a quarter of major film releases.
The ruling delivers a sharp blow to both media giants amid an increasingly tough streaming landscape. The next court hearing is scheduled for August.
