Court Pauses Paramount’s Deal for Two More Weeks

On July 23, 2026, U.S. District Judge Araceli Martínez-Olguín extended a temporary restraining order that prevents Paramount Skydance from closing its acquisition of Warner Bros. Discovery for 14 more days, moving any earliest closing into mid-August. The judge said she needed time to resolve preliminary injunction motions and disputes about the hearing schedule.

Twelve state attorneys general, led by California Attorney General Rob Bonta, filed suit claiming the deal would break Section 7 of the Clayton Act and reduce competition in film, television and cable markets. They seek a preliminary injunction to keep the transaction frozen while the case proceeds. The states say consolidation would raise prices and limit choices for creators and audiences.

The Department of Justice had closed its investigation on June 12, 2026, and declined to block the merger; nevertheless, the states’ separate legal challenge remains active. If the sale goes forward, it would combine studios and streaming services including Paramount+ and HBO Max, as well as broadcast and cable outlets. Valued at about $110 billion, the deal would create one of the largest entertainment companies in decades.

Paramount warns that delays could trigger a ticking fee beginning if the deal is not closed by September 30, 2026, and it has asked for a short, expedited hearing to present witnesses. The court’s extension gives time to set a clear schedule, but a final outcome could either block the merger for months or allow the companies to close quickly if the injunction is denied. Lawyers for both sides are preparing briefs and witness lists.