Federal Judge Issues Temporary Restraining Order to Stop Paramount Skydance Takeover Without Further Court Review

WASHINGTON — On Monday, California federal District Judge Araceli Martínez-Olguín ordered a temporary halt to the $111 billion Paramount Skydance-Warner Bros. Discovery merger following a lawsuit filed last week by a coalition of 12 state attorneys general. The attorneys general are suing to stop the merger on grounds that it would violate federal antitrust law, leading to higher prices for film and cable audiences and fewer movies and TV shows.

If completed, the merger would further consolidate cable networks and theatrical markets by combining two of the top-three cable programmers and two of the top-five film distributors. 

The 12-state coalition, led by California Attorney General Rob Bonta, sought the temporary restraining order to block the deal from closing for up to 28 days. The states are also seeking a preliminary injunction, which would block it until the judge rules on the merits of the states’ lawsuit. The injunction hearing is scheduled for Aug. 3.

The combination of these two massive entertainment and news companies would create a media colossus with CBS, CNN, HBO, Nickelodeon and the Warner Bros. and Paramount film studios — among other major media properties — all under one roof. The deal’s announcement in 2025 spurred widespread protests led by a coalition of First Amendment advocates, unions, consumer-rights groups and Hollywood actors and directors. 

Free Press Vice President of Policy and General Counsel Matt Wood said:

“It’s gratifying to see Judge Martínez-Olguín recognize the strength of the attorneys’ general case at this preliminary stage. She noted that Paramount Skydance will suffer no economic harm whatsoever by allowing this antitrust challenge to play out in court. 

“These state attorneys general are stepping up to enforce the nation’s laws when the Trump administration is refusing to do so. They took the time needed to assemble this case diligently, analyzing how this mammoth merger would further concentrate ownership in the film and cable-TV industries.

“As we saw earlier this year, companies like broadcast giant Nexstar tried to game the system by claiming to close its takeover of Tegna even after many of the same states had filed to block that unlawful merger. Today’s decision is a logical and necessary step toward preventing the Ellisons from trying the same kinds of tricks.”