US judge halts 110 billion Warner-Paramount merger after 12 states sue over Hollywood competition

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US judge halts 110 billion Warner-Paramount merger after 12 states sue over Hollywood competition
US states sue to block Paramounts 110 billion Warner Bros Discovery takeover over antitrust concerns
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A US federal judge has temporarily halted the $110 billion acquisition of Warner Bros by Paramount, following a lawsuit filed by 12 US states led by California. The states argue that the merger would reduce competition in Hollywood.
The temporary restraining order was issued by Judge Araceli Martínez-Olguín of the US District Court for the Northern District of California. The order halts the acquisition for at least 14 days, with a hearing scheduled for August 3, 2026, to consider a preliminary injunction.
The lawsuit, filed on July 13, 2026, argues that the merger would "extinguish competition" in Hollywood and lead to fewer choices for consumers, particularly moviegoers and cable customers across the US. The states involved include California, New York, and ten others.
Warner Bros and Paramount are two of the five legacy studios in Hollywood. The merger would bring together a host of TV networks, titles filling streaming libraries, and news operations. Warner's HBO Max, fan favorites like "Harry Potter," and even CNN would come under the same roof as Paramount-owned CBS, movies like "Top Gun," and the Paramount+ streaming service.
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." He added, "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."
Paramount has argued that the merger would benefit consumers and workers alike, and that the states' antitrust arguments are "without merit" or "any basis in modern market realities."
The temporary restraining order granted on Monday halts the deal from progressing for at least 14 days, although the pause could be extended for up to 28 days. The court has set August 3 as the date for a hearing on the states' preliminary injunction motion, but that schedule could also be pushed back.
The lawsuit was filed by a coalition of 12 states, including California and New York, which argue that the merger would eliminate competition in Hollywood and violate federal antitrust laws. The states claim that the combined company would control nearly 27% of the market for wide-release films and a similar share of basic cable TV licenses.
Paramount, which was bought out by Skydance just last year, has vowed to vigorously defend its acquisition. The company has touted regulatory greenlights the deal has received elsewhere, including from President Donald Trump's administration last month.
The temporary restraining order granted on Monday halts the deal from progressing for at least 14 days, although the pause could be extended for up to 28 days. The court has set August 3 as the date for a hearing on the states' preliminary injunction motion, but that schedule could also be pushed back.
The lawsuit was filed by a coalition of 12 states, including California and New York, which argue that the merger would eliminate competition in Hollywood and violate federal antitrust laws. The states claim that the combined company would control nearly 27% of the market for wide-release films and a similar share of basic cable TV licenses.
Paramount, which was bought out by Skydance just last year, has vowed to vigorously defend its acquisition. The company has touted regulatory greenlights the deal has received elsewhere, including from President Donald Trump's administration last month.
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