Federal judge issues temporary restraining order against Paramount’s proposed merger with Warner Bros. Discovery

Paramount Skydance Corp.’s (Paramount) proposed merger with Warner Bros. Discovery (Warner Bros.) has been paused.

On July 13, 2026, twelve attorneys general, led by California Attorney General Rob Bonta, filed a lawsuit in the U.S. District Court for the Northern District of California challenging Paramount’s acquisition of Warner Bros, according to a press release. The deal, reportedly valued at $110 billion, would give Paramount nearly a one-third share of the industry in areas including theatrical motion pictures and basic cable programming.

The lawsuit alleges the merger violates Section 7 of the Clayton Antitrust Act of 1914, which states that a merger that “may substantially lessen competition or tend to create a monopoly” is illegal, per the release.

“The unlawful merger of these two entertainment behemoths would lead to higher prices, lower quality, and less content for film and television, harming movie theaters, basic cable distributors, and ultimately, audiences on every sofa and movie theater seat in the U.S.,” said California Attorney General Rob Bonta in the press release. “Consolidation here not only leads to higher prices — it also leads to fewer opportunities for important stories to come to life, and fewer ways for audiences to encounter stories, ideas, and perspectives beyond their own experiences.”

In the latest update, U.S. District Judge Araceli Martínez-Olguín of the Northern District of California has responded to the lawsuit by issuing a 14-day temporary restraining order, NBC News reports.

Paramount said the decision by the federal judge to pause the acquisition is “wrong on both the facts and the law” and said the restraining order is “one of the weakest merger challenges in modern antitrust history,” according to the outlet.

There is a hearing scheduled for Aug. 3.

“We are 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,” a Paramount spokesperson said, per NBC News.

The post Federal Judge Issues Temporary Restraining Order Against Paramount’s Proposed Merger With Warner Bros. Discovery appeared first on AfroTech.

The post Federal Judge Issues Temporary Restraining Order Against Paramount’s Proposed Merger With Warner Bros. Discovery appeared first on AfroTech.