A U.S. federal judge has issued a temporary restraining order, blocking the proposed $110bn deal between Paramount Skydance and Warner Bros Discovery. The order follows a lawsuit filed by 12 states, led by California and New York, which argue the merger would hurt competition, increase prices for moviegoers and cable subscribers, and ultimately harm audiences.
The judge warned that allowing the merger to proceed could make it extraordinarily difficult to unbundle the companies if a future ruling requires cancellation, citing the public interest in antitrust enforcement. Under the 14‑day injunction, neither company can finalise the deal or begin combining assets; the next hearing is set for August.
The deal would join two of Hollywood’s biggest studio houses, covering franchises such as Harry Potter, Batman, Mission: Impossible and Top Gun, and channels including CNN, MTV and Nickelodeon. A successful merger would make the new entity hold more than a quarter of the market in major film releases.
The pause forces both Paramount and Warner Bros to continue operating as separate competitors while the legal dispute unfolds, creating uncertainty for investors, partners and viewers in an increasingly challenging streaming market.
