A US federal judge has issued a temporary restraining order halting Paramount's proposed $110 billion (£86 billion) takeover of Warner Bros. Discovery, dealing a blow to the deal just as it appeared to be clearing regulatory hurdles. The order, granted by a judge in the Northern District of California, followed a lawsuit from 12 state attorneys general, led by California's Rob Bonta, who argued the merger would breach US antitrust law by concentrating too much power over film distribution and cable TV licensing, in violation of the Clayton Antitrust Act. The block came despite the US Department of Justice having cleared the tie-up in June, concluding it was unlikely to harm competition and could even offer consumers a stronger rival to streaming giants such as Netflix and Amazon.

The 14-day hold gave the court time to consider whether to grant a preliminary injunction that would freeze the merger for the duration of the litigation. Bonta called the order "a critical first win", warning the deal would mean "fewer opportunities for more people, worse products and services for all people." The proposed merger, agreed in February after a rival Netflix bid for Warner Bros. collapsed, would combine two major studios, the HBO Max and Paramount Plus streaming services, numerous TV networks and games studios, and carries roughly $29 billion in debt along with termination fees running into billions of dollars. It had already drawn criticism from directors, producers and actors in April, who urged regulators to intervene.