Court Pauses Paramount’s Deal for Two More Weeks

A federal judge extended a temporary restraining order on July 23, 2026, pausing Paramount Skydance’s planned acquisition of Warner Bros. Discovery for another 14 days. The order paused closing while the court considers lawsuits by a coalition of 12 state attorneys general led by California Attorney General Rob Bonta, who argue the merger would reduce competition in key film and television markets.

The Department of Justice had closed its own antitrust review on June 12, 2026, and it declined to block the transaction. Although the DOJ approved the deal, state officials say different harms remain and they seek a preliminary injunction. The court set an accelerated schedule that could include an evidentiary hearing in August while both sides prepare legal briefs.

Paramount has warned that delays could trigger a ticking fee the company must pay if the deal is not closed by September 30, 2026, and the company is seeking a short hearing to make its case. While the companies and the states disagree on timing and format, the judge wrote there was good cause to extend the pause to resolve scheduling disputes.