A judge has ordered the planned Paramount and Warner Bros. Discovery (WBD) merger be paused for at least 14 days following accusations the deal could violate US antitrust laws.
WBD announced last October that it was considering a “potential sale”, starting the acquisition process. Following this announcement, Netflix offered $82.7 billion to acquire WBD in December, including its film studio, streaming business, and games division.
Shortly after Netflix’s offer, Paramount submitted an initial bid of $108.4 billion to acquire WBD. After months of negotiations and a lawsuit from Paramount, Netflix withdrew its bid on February 26, 2026.
Now, as reported by Variety, a state coalition argued that if the merger went ahead, it could lead to fewer movies and TV shows and higher prices.
“My office and attorneys general nationwide have secured an emergency order blocking the unlawful merger of Warner Bros. and Paramount,” said California Attorney General Rob Bonta.
“This is a critical first win in our case to ensure this megamerger never sees the light of day. History tells the tale of what happens when a few people have great power over markets that are central to Americans’ lives: fewer opportunities for more people, worse products and services for all people. With our lawsuit, we’re fighting for a free and fair market and a thriving film and television industry that serves creatives and audiences alike. We have a full tank of gas, the law on our side, and look forward to continuing to make our case.”
After listening to arguments from both sides last week, Judge Araceli Martinez-Olguin granted a 14-day restraining order ahead of Paramount’s plan to close the deal by July 22. The restraining order can be extended to as long as 28 days.
“Plaintiff States’ showing at least demonstrates that serious questions going to the merits remain, weighing in favor of preliminary injunctive relief,” the judge said.
“Paramount and Warner Bros. will continue to operate as separate, viable companies competing in the marketplace while they wait for the Court to adjudicate this case. The balance of equities, combined with the public’s vital interest in antitrust enforcement, therefore tips sharply in favor of the requested injunctive relief.”
You can read our full timeline of the WBD acquisition here.