Merger deal between Paramount and Warner Bros paused by judge
A US federal judge has issued a 14-day injunction blocking the $110 billion merger between Paramount and Warner Bros Discovery. The ruling follows a lawsuit from 12 states concerned that the consolidation would stifle market competition and increase prices for consumers.
Why it matters
This legal challenge represents a significant test for antitrust enforcement in the modern media and streaming landscape.
Image source, Getty Images By Francisco Velasquez Business reporter Published 20 July 2026 A US federal judge has temporarily blocked the proposed $110bn (£85bn) merger between media giants Paramount Skydance and Warner Bros Discovery.
The decision follows a lawsuit brought by a coalition of 12 US states , including California and New York, aiming to halt the deal over concerns it would stifle competition and raise consumer prices.
Prosecutors representing the states said merging two major studios would cause “substantial harm on movie theatres, basic cable distributors, and, ultimately, audiences nationwide”.
In response, the media giants argued that the states had misread the market and that merging would improve streaming efficiency.
US district judge Araceli Martínez-Olguín issued the temporary restraining order on Monday following legals arguments heard last week.
Under the 14-day injunction, neither company can finalise the deal or start joining the businesses together.
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