A federal judge has temporarily halted the proposed merger between Paramount, including its Skydance unit, and Warner Bros. Discovery. The deal, valued at $110 billion, is now on ice pending a court hearing later this month.
A $110 billion deal on hold
The temporary restraining order was issued in federal court. Under the order, the companies cannot take any further steps to close the transaction until at least July 22, when the judge is scheduled to rule on whether to extend the block.
The merger would combine two of Hollywood's largest studios, creating a media giant with massive film and television assets. Paramount's properties include the Paramount Pictures studio, CBS, and the Skydance production company. Warner Bros. Discovery owns Warner Bros. studios, HBO, CNN, and the Discovery channel.
The $110 billion valuation makes this one of the biggest media mergers in history. Neither Paramount nor Warner Bros. Discovery has commented publicly on the court order.
Next steps in court
The judge has set a hearing for July 22, 2026, to consider whether the restraining order should be extended or dissolved. If the order is lifted, the merger could proceed pending regulatory approvals. If it remains in place, the deal could be delayed or derailed entirely.
It's unclear what legal arguments were presented to the judge to justify the temporary halt. The court filings have not been made public, and the judge's order did not detail the reasoning.
For now, the companies are in a holding pattern. Both are expected to contest the injunction at the July hearing.
