Paramount Skydance’s proposed acquisition of Warner Bros. Discovery has been temporarily halted by a federal judge.

U.S. District Judge Araceli Martínez-Olguín granted a temporary restraining order preventing Paramount and Warner Bros. Discovery from completing or beginning to consolidate their operations while the court considers a broader antitrust challenge.

The order will remain in effect for 14 days. A hearing on a preliminary injunction is scheduled for August 3, 2026.

A coalition of 12 state attorneys general, led by California, filed a lawsuit seeking to block the proposed $110 billion transaction. The states argue that combining two of Hollywood’s largest studios would reduce competition across theatrical film distribution and basic cable television.

The lawsuit claims the merged company could gain greater power over movie theaters and cable distributors while potentially leading to higher prices, fewer consumer choices and reduced production of movies and television shows.

In granting the temporary order, the judge found that the states had raised serious questions about whether the transaction could violate federal antitrust law.

The ruling does not permanently cancel the acquisition. It preserves the current structure of both companies while the court decides whether the merger should remain blocked throughout the litigation.

Paramount has argued that the combined company would be better equipped to compete with larger technology and streaming businesses. The U.S. Department of Justice previously completed its investigation and said it did not believe the transaction was likely to harm competition.

The coalition of states is challenging that conclusion independently through federal court.

Should the acquisition eventually proceed, Paramount Skydance would gain control of major Warner Bros. Discovery properties including Warner Bros. Pictures, HBO, HBO Max, DC Studios, CNN, Discovery and several cable networks.

For now, Paramount and Warner Bros. Discovery must remain separate until the temporary order expires or the court issues another ruling following the August 3 hearing.