Judge pauses Paramount-Warner merger

Twelve state attorneys general requested a temporary restraining order barring Paramount Skydance from closing the blockbuster deal.

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.

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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.