Federal judge halts Paramount and Warner Bros. $81 billion merger to allow states' legal challenges

Twelve states, led by California, sued to block the merger, alleging that it would "extinguish competition" in Hollywood and reduce choices for consumers.

Published: July 20, 2026 2:21pm

A federal judge on Monday ordered Paramount and Warner Bros. Discovery to pause their $81 billion merger for at least two weeks. 

This will allow states that are challenging the deal more time for their case to make their way through court, the Associated Press reported

Twelve states, led by California, sued to block the merger, alleging that it would "extinguish competition" in Hollywood and reduce choices for consumers. 

The states’ top prosecutors asked the two companies not to close their deal until courts could fully evaluate the states' complaints. When the companies refused, the states filed for a temporary restraining order, which District Judge Araceli Martínez-Olguín granted on Monday.

California Attorney General Rob Bonta said in a statement that the decision is a "critical first win" in the states' case. 

 

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