A federal judge has put a temporary hold on Paramount Skydance’s plan to merge with Warner Bros. Discovery. The judge believes the $111 billion deal could potentially break U.S. antitrust laws, raising significant concerns about competition.
On Monday, a federal judge in Oakland issued a temporary order blocking a deal, following a request from a group of twelve state attorneys general led by California’s Rob Bonta. The court will now investigate how the deal might affect competition in the market.
The order pauses the deal for 14 days.
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Judge Araceli Martínez-Olguín announced she will rule by next Wednesday on whether to temporarily halt the major Hollywood agreement.
Attorney General Bonta celebrated an initial legal victory in the effort to block the proposed merger, stating it was “a critical first win.” He argued that history shows concentrating power in the hands of a few harms consumers by limiting options, lowering quality, and stifling innovation. Bonta emphasized his lawsuit aims to protect competition and ensure a vibrant film and television industry for both creators and viewers.
Judge Martínez-Olguín issued the order following a court hearing in Oakland on Friday, marking the beginning of a legal battle over a proposed merger that could significantly change the entertainment industry.
Two historic movie studios, home to popular franchises like Harry Potter, Batman, Top Gun, The Matrix, The Big Bang Theory, Ted Lasso, and Game of Thrones, are planning to merge. As part of this deal, the networks HBO and CNN would be sold to new owners.
Although many expected the decision, it still created problems for David Ellison’s attempt to rapidly finish buying a large company, a purchase that has received President Trump’s backing. Ellison is hoping to close the deal by September to avoid having to pay Warner Bros. Discovery shareholders more money.
Since the case was moving quickly, the judge focused her review on just one of the three areas where the plaintiff claimed the merger could create unfair competition: the market for new Hollywood movies.
Judge Martínez-Olguín stated in her ruling that the plaintiffs provided strong evidence the newly merged company would control a significant portion of the movie theater distribution market.
If Paramount and Warner Bros. were to combine, they would have roughly 27% of the market share for new movies opening in over 3,000 theaters.
The judge stated that, based on the combined market share, she believes the proposed merger will likely break antitrust laws. As a result, Paramount and Warner Bros. Discovery are temporarily blocked from completing the deal or combining their businesses in any way.
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Nearly 1,000 artists and filmmakers – including well-known names like Ben Stiller, Bryan Cranston, Noah Wyle, Joaquin Phoenix, Kristen Stewart, and Jane Fonda – signed the letter.
The court order applies to all officers, lawyers, and anyone else working with the Defendants, according to Martínez-Olguín.
A Paramount spokesperson was not immediately available for comment.
The deal is far from dead Emarketer senior analyst Ross Benes said in a statement.
Benes believes the legal order will probably cause only a minor, temporary delay. He argues that because of the company’s close ties with Trump, any future obstacles to the deal are likely to be quickly overcome.
2026-07-20 21:01