US District Judge Araceli Martínez Olguín issued a temporary restraining order on Monday, 20 July 2026, pausing Paramount Skydance Corp.'s proposed $110 billion acquisition of Warner Bros. Discovery Inc. for 14 days, ruling that the deal "likely" violates antitrust law.
The order followed a lawsuit filed on 13 July by a coalition of twelve state attorneys general, led by California's Rob Bonta. The states argue that combining two of Hollywood's five remaining major studios would substantially reduce competition in the industry, in violation of Section 7 of the Clayton Antitrust Act.
The ruling is temporary: a hearing on the states' request for a fuller preliminary injunction is scheduled for 3 August 2026, where a judge will decide whether to block the merger for longer while the underlying antitrust case proceeds.
News of the pause moved markets, with Warner Bros. Discovery shares falling around 4% as investors weighed the odds that the long-pursued merger could now collapse entirely. If completed, the deal would combine two of the industry's largest film and television libraries and streaming operations under a single owner, reshaping the US media landscape.