A U.S. federal judge has temporarily blocked the proposed $110bn merger between Paramount Skydance and Warner Bros Discovery.
The order follows a lawsuit brought by a coalition of 12 U.S. states, including California and New York, which contend the merger would stifle competition and raise consumer prices.
State prosecutors argued that combining the two major studios would inflict substantial harm on movie theaters, basic cable distributors and audiences nationwide.
The media giants defended the deal, claiming it would improve streaming efficiency and that the states misread the market.
Judge Araceli Martínez‑Olguín issued the temporary restraining order on Monday, after hearing legal arguments last week.
Under the 14‑day injunction, neither company can finalize the deal or begin merging operations.
She noted the state coalition raised serious questions about the deal’s impact on movie distribution and warned that allowing the merger now would make it extraordinarily difficult to undo later.
Judge Martínez‑Olguín also highlighted that the public’s vital interest in antitrust enforcement outweighs any temporary delay to the merger, and said Paramount and Warner Bros would continue to operate separately while litigation proceeds.
If the deal goes forward, the new company would own franchises such as Harry Potter, Batman, Mission: Impossible, and Top Gun, as well as TV channels CNN, MTV and Nickelodeon, making it responsible for over a quarter of major film releases.
The next court hearing is set for August, leaving Hollywood’s future in limbo for the time being.
