Paramount and Warner blocked from completing $81 billion merger; states win two-week delay

A federal judge halted the $81 billion Paramount-Warner merger Monday, granting a temporary delay that gives 12 U.S. states more time to argue their antitrust case.

The states, led by California, filed suit last week claiming the merger would "annihilate competition" at Hollywood and shrink consumer choice, especially for film and cable subscribers. They asked the companies to pause the deal pending court review. When Paramount and Warner refused, the states sought a temporary restraining order — which Federal Judge Araceli Martínez-Olguín granted Monday.

The halt blocks the merger for at least 14 days, with a possible extension to 28 days. A hearing on a preliminary injunction is set for August 3, though the date could shift.

Time pressure is mounting. Before Monday's ruling, the companies had proposed concluding the preliminary-injunction hearing by late August, leaving room for an appeal before a September 30 deadline.

California Attorney General Rob Bonta called the delay "a crucial first victory." Merging Warner and Paramount would unite two of the last five remaining legacy Hollywood studios, along with multiple TV channels, streaming content, and news operations — including HBO Max, the Harry Potter franchise, and CNN.

Paramount, acquired by Skydance last year, vowed to "defend vigorously." The company has already won regulatory approval from the Trump administration. Paramount argues the merger strengthens competition against larger streaming and entertainment giants and dismissed the states' claims as "without merit" and "divorced from modern-market realities."