Federal judge issues 14-day pause on Paramount-Warner merger

A federal judge has temporarily blocked the proposed $110 billion merger between Paramount and Warner Bros. Discovery, delivering a significant legal victory to a coalition of 12 states that sued to stop the deal on antitrust grounds. U.S. District Judge Araceli Martínez-Olguín issued a 14-day temporary restraining order on Monday, July 20, 2026, halting the transaction while she considers the states' request for a longer-term preliminary injunction.

The order prevents Paramount from closing its acquisition of Warner Bros. Discovery, a deal that would unite two of Hollywood's oldest studios, combine the Paramount+ and Max streaming services, and bring major news assets like CBS and CNN under the control of David Ellison. The states, led by California Attorney General Rob Bonta, filed their lawsuit on July 13, arguing the merger would substantially lessen competition, leading to higher prices, lower quality, and less choice for consumers, theaters, and cable providers.

In her ruling, the judge wrote that the states had shown "serious questions going to the merits" of the case, justifying the temporary pause. She noted that Paramount had acknowledged it would not be harmed by a...