A federal judge issued a temporary restraining order blocking the Paramount Skydance-Warner Bros. Discovery deal.
Why it matters: The ruling gives state antitrust challengers immediate leverage in a major media merger fight. It also puts a short-term stop on a deal that could reshape streaming, cable and film distribution.
- A federal judge in the Northern District of California issued a temporary restraining order on July 20, 2026.
- The order pauses the proposed Paramount Skydance-Warner Bros. Discovery deal for at least 14 days.
- A preliminary injunction hearing is set for Aug. 3, 2026.
- Twelve Democratic-led state attorneys general, led by California, sued on July 13 to block the roughly $110 billion transaction.
A federal judge in the Northern District of California granted a temporary restraining order that stops Paramount Skydance from closing its proposed acquisition of Warner Bros. Discovery for at least 14 days, according to AP. The order is titled a temporary restraining order in the case brought by the states, and the court set a preliminary injunction hearing for Aug. 3, 2026.
The ruling follows a July 13 lawsuit from 12 Democratic-led state attorneys general, led by California, that seeks to block the roughly $110 billion deal on antitrust grounds. The states said in their complaint that the combined company would hold nearly one-third of U.S. theatrical motion picture distribution and nearly one-third of basic cable programming.
In plain English, the order means Paramount Skydance cannot close the deal for now while the court considers whether to extend the block with a preliminary injunction.
California Attorney General Rob Bonta said the merger would lead to higher prices, lower quality and less content for film and television audiences - an allegation the states must prove in court, not an established fact. New York Attorney General Letitia James said the court order halted the merger while the coalition pursues its injunction request.
The dispute sets up a contrast with the Justice Department, which said on June 12 that the transaction was not likely to result in harm to competition or American consumers. Paramount has said the states' claims are without merit and that the deal would benefit consumers and workers.
By the numbers
- 14 days - minimum length of the temporary restraining order
- $110 billion - estimated size of the transaction
- 12 - Democratic-led state attorneys general in the lawsuit
Yes, but: The order is temporary, and the court could still allow the deal to move forward after the Aug. 3 hearing.
What's next: A preliminary injunction hearing is set for Aug. 3, 2026.