A U.S. federal judge pauses the proposed Paramount–Warner Bros. Discovery merger after a coalition of 12 states challenges the deal on antitrust grounds. Multiple outlets report that Judge Araceli Martínez-Olguín of the U.S. District Court for the Northern District of California orders Paramount and Warner Bros. Discovery to halt steps toward completing the transaction for at least two weeks, preserving the status quo while the court reviews the states’ request for injunctive relief.

The states argue the combination would reduce competition in Hollywood and harm consumers by narrowing choices. In the filings, they seek a temporary restraining order and a preliminary injunction that could block the merger for longer. The judge’s order keeps the companies operating as separate, competing businesses while the legal challenge proceeds. A further hearing is scheduled to consider whether a preliminary injunction should be issued.

In parallel, other litigation is referenced: Deadline reports a separate consumer lawsuit in which a judge denies consumers’ bid for a preliminary injunction, while considering the defendant’s motion to dismiss. Paramount also seeks procedural steps, including an evidentiary hearing, as the court continues to evaluate the dispute.