A judge has ordered a temporary pause to the controversial Paramount-Warner Bros. merger.
As reported by Variety, Judge Araceli Martinez-Olguin called for the merger to come to a stop after a state coalition argued the move would violate federal antitrust law. The fear is that it could lead to higher prices and fewer movies and TV shows.
Paramount had reportedly expected to close the deal by Wednesday, July 22. The temporary restraining order will keep the deal from being finalized for another 14 days, but could be extended for as much as 28 days.
A total of 12 states seek to block the Paramount-Warner Bros. merger. Paramount attorney Jeffrey Kessler has argued the states have failed to provide enough evidence to suggest the merger is anticompetitive.
“Plaintiff States’ showing at least demonstrates that serious questions going to the merits remain, weighing in favor of preliminary injunctive relief,” Martinez-Olguin 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.”
A Paramount takeover of Warner Bros. was almost certainly always going to have its critics, but the lead-up to today’s events has been especially controversial. Movie fans will remember when Netflix announced an $82.7 billion deal to acquire the company back in December 2025. The months ahead saw that slowly fall apart after Paramount revealed it had launched its own hostile bid, which it called a “superior all-cash offer” at the time.
In a February 2026 plot twist, it was reported that Warner Bros. was interested in reopening negotiations with Paramount despite agreeing to sell to Netflix. Then, later that same month, Netflix walked away from the deal, all but securing Paramount as the victor with its $110 billion offer. Actually finalizing the deal, however, is a completely different story.
As noted by NBC News, the suit to block the merger was launched July 13, with the court hearing arguments from both the 12-state coalition and Paramount Friday, July 17. California Attorney General Rob Bonta called the judge’s ruling 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,” Bonta said (via Variety). “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.”
He added (via NBC): “The unlawful merger of these two entertainment behemoths would lead to higher prices, lower quality, and less content for film and television, harming movie theaters, basic cable distributors, and ultimately, audiences on every sofa and movie theater seat in the U.S.”
Paramount, meanwhile, has fought back against the claims. In a statement, it called the restraining order “one of the weakest merger challenges in modern antitrust history.”
“We will vigorously defend the transaction and demonstrate that this challenge is inconsistent with sound competition policy and the competitive realities of the media marketplace,” Paramount added.
Photo by Justin Sullivan/Getty Images.
Michael Cripe is a freelance writer with IGN. He’s best known for his work at sites like The Pitch, The Escapist, and OnlySP. Be sure to give him a follow on Bluesky (@mikecripe.bsky.social) and Twitter (@MikeCripe).
