Paramount Skydance’s takeover of Warner Bros. Discovery hit a roadblock Monday when a federal judge paused the proposed merger, granting a request from a coalition of 12 state attorneys general who sued to thwart the $110 billion deal.
U.S. District Judge Araceli Martínez-Olguín of the Northern District of California issued a temporary restraining order barring Paramount from closing the transaction, a corporate tie-up that would unite two movie studios, two streaming platforms and two news organizations under the control of David Ellison, the son of billionaire technology tycoon Larry Ellison.
Martínez-Olguín’s order said the restraining order will remain in effect for 14 days. The judge, who is presiding over the case, scheduled an Aug. 3 hearing on the states’ motion for a preliminary injunction, which would freeze the transaction while the legal process plays out.
The plaintiffs, led by California Attorney General Rob Bonta, sued to block the merger July 13, arguing in a 38-page complaint that it would “extinguish competition” in Hollywood.