Judge pauses $110B Paramount-Warner Bros. merger

Paramount Skydance’s proposed $110 billion acquisition of Warner Bros. Discovery (WBD) has hit a roadblock after a federal judge temporarily paused the deal in response to a lawsuit from a coalition of 12 state attorneys general, who argue the merger would harm competition.

U.S. District Judge Araceli Martínez-Olguín issued the 14-day pause on Monday, after hearing arguments from both sides last week. The coalition, led by California Attorney General Rob Bonta, could seek another pause once the 14 days lapse, further delaying the merger.

The states’ lawsuit alleges the deal would harm movie theaters, basic cable distributors, and audiences. They argue that combining the two companies would lessen competition in three areas: wide-release theatrical film distribution, “top-grossing” theatrical distribution, and basic cable licensing.

“This is a critical first win in our case to ensure this megamerger never sees the light of day,” Bonta said in a statement, adding that the coalition is fighting for a free and fair market and a film and television industry that serves both creatives and audiences.

The deal would combine two major film studios as well as the streaming platforms Paramount+ and HBO Max. It would also create one of the largest television-network portfolios in the industry, bringing together Paramount’s CBS and MTV with WBD’s CNN and HBO.

A Paramount spokesperson said the company is confident the evidence will show the state AGs’ antitrust arguments lack merit, calling their alleged markets and anticompetitive-effects claims baseless. The spokesperson said the merger is lawful and pro-competitive, will benefit consumers, creators, workers, and the entertainment industry, and that Paramount will continue to defend the transaction.

Paramount CEO David Ellison had said in May that the transaction was on track to close by September. The legal roadblock has the potential to derail Paramount’s efforts to become a bigger competitor to companies like Netflix.

The proposed acquisition has also drawn scrutiny from filmmakers, actors, and industry professionals, who have argued the deal would reduce competition and further consolidate the U.S. media industry. WBD did not immediately respond to TechCrunch’s request for comment.

Why it matters

The pause injects fresh uncertainty into one of the largest pending media mergers, threatening Paramount’s September closing target and its push to challenge streaming leaders like Netflix.