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Judge pauses Paramount takeover of Warner Bros Discovery

moviesJul 21, 2026561,144

A US federal judge, Araceli Martínez-Olguín, on Monday issued a 14-day temporary restraining order blocking Paramount Skydance’s proposed roughly $110 billion takeover of Warner Bros. Discovery after a coalition of 12 states, including California and New York, sued to stop the deal on antitrust grounds. State prosecutors warned the merger would cause “substantial harm on movie theatres, basic cable distributors, and, ultimately, audiences nationwide.” The judge said the states raised “serious questions” about the deal’s impact on movie distribution and warned it would be “extraordinarily difficult to unscramble the egg” if the court later blocked the merger. Paramount and Warner Bros argued the combination would improve streaming efficiency, but Martínez-Olguín said the “public's vital interest in antitrust enforcement” outweighed a temporary delay. Under the injunction neither company can finalize the transaction or begin integrating businesses while the litigation proceeds, and the companies will continue to operate as separate, competing entities; Warner Bros shareholders had already approved the deal.

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