A judge has temporarily halted the proposed merger between Paramount and Warner Bros. for at least 14 days, citing concerns that the deal could violate federal antitrust law. The temporary restraining order was issued by Judge Araceli Martinez-Olguin following an argument by a state coalition that the consolidation might result in increased prices for consumers and a decrease in available movies and television shows.
Paramount had reportedly anticipated closing the deal by Wednesday, July 22. This judicial intervention now prevents the finalization of the merger for a minimum of two weeks, with the possibility of an extension up to 28 days. A total of 12 states have expressed opposition to the merger.
Paramount's attorney, Jeffrey Kessler, contended that the states have not presented sufficient evidence to demonstrate that the merger would be anticompetitive. However, Judge Martinez-Olguin stated that the plaintiffs have raised "serious questions going to the merits," which warrants preliminary injunctive relief. She added that Paramount and Warner Bros. will continue to operate as independent entities while the court adjudicates the case, and that the "balance of equities, combined with the public’s vital interest in antitrust enforcement, therefore tips sharply in favor of the requested injunctive relief."
The path to this point has been contentious. In December 2025, Netflix announced an $82.7 billion deal to acquire Paramount. This proposed transaction eventually collapsed after Paramount launched its own unsolicited bid, which it described at the time as a "superior all-cash offer."