A U.S. judge has temporarily blocked the $110 billion U.S. merger between Paramount Skydance (PSKY) and Warner Bros. Discovery (WBD).
California District Judge Araceli Martínez-Olguín has granted a temporary restraining order on the deal that would see Paramount Skydance acquire Warner Bros. Discovery.
The judge’s order puts a 14-day pause on anything moving forward with the transaction.
The ruling comes after a group of state attorneys general led by California filed a lawsuit seeking to block the mega-deal due to antitrust concerns.
The acquisition would unite the film studios of Paramount and Warner Bros, the CBS broadcast network, pay TV networks such as CNN, MTV and BET, and streaming platforms Paramount+ and HBO Max.
In a statement, Paramount Skydance vowed to fight the antitrust lawsuit, saying “this merger is lawful, pro-competitive, and will benefit consumers.”
In the order, Judge Martínez-Olguín said the state attorneys general presented “compelling evidence that the combined firm resulting from the transaction will possess substantial market share in the wide-release theatrical distribution market.”
The states can seek another temporary restraining order after the 14 days expires or seek an injunction, which would further delay the deal.
The Paramount-Warner Bros. transaction is under review by regulators in the European Union and the United Kingdom.
The Antitrust Division of the U.S. Department of Justice has already signed off on the acquisition, clearing it of U.S. federal hurdles.
Paramount Skydance said it still plans to close the deal by the end of September this year.
Under terms of the agreement, Paramount Skydance would owe Warner Bros. Discovery a $7 billion U.S. breakup fee if the acquisition doesn’t move forward due to regulatory issues.
PSKY stock has declined 35% this year to trade at $8.57 U.S. per share. WBD stock has fallen 9% in 2026 to change hands at $25.86 U.S. a share.
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