U.S. District Judge Araceli Martínez-Olguín paused the $110 billion merger between Paramount Skydance and Warner Bros. Discovery. The temporary restraining order halts the deal for 14 days. This decision follows an antitrust lawsuit filed by a coalition of 12 states led by California.
The coalition argues the merger violates the Clayton Antitrust Act by reducing industry competition. They contend the deal would increase prices and lower content quality for consumers, theaters, and distributors.
Judge Martínez-Olguín found the states raised serious questions about the merger's anticompetitive nature. The court scheduled a hearing for August 3 to consider a preliminary injunction. This injunction could block the deal for the duration of the lawsuit.