A US federal judge has thrown a temporary roadblock in front of the proposed $110bn (£85bn) merger of media giants Paramount Skydance and Warner Bros Discovery, issuing a 14-day restraining order that prevents either company from finalising the deal or beginning to integrate their operations.
The order, handed down on Monday by US district judge Araceli Martínez-Olguín, came in response to a lawsuit filed by a coalition of 12 US states led by California and New York. The states argue the merger would stifle competition and drive up consumer prices. Prosecutors representing them said combining the two studios would cause “substantial harm on movie theatres, basic cable distributors, and, ultimately, audiences nationwide”.
“US judge blocks Paramount-Warner Bros merger after 12 states sue over competition concerns.”
In her ruling, Judge Martínez-Olguín noted that the states had raised “serious questions” about the deal’s impact on movie distribution. She warned that allowing the merger to proceed now would make it “extraordinarily difficult to unscramble the egg” if the court later decided to block it entirely. Rejecting the companies’ argument that the states had misread the market and that the merger would improve streaming efficiency, she said “the public’s vital interest in antitrust enforcement” outweighed any temporary delay. The judge added that Paramount and Warner Bros “will continue to operate as separate, viable companies competing in the marketplace” while legal proceedings continue.
The decision delivers a sharp temporary blow to both media giants as they seek to navigate an increasingly tough streaming landscape. The next court hearing dates have been set for August.