Warner Bros. Discovery's sale process — one of the largest media deals ever — has hit a legal roadblock after a federal judge paused the transaction following a lawsuit from 12 state attorneys general filed on 13 July. The deal is significant because it would reshape the entertainment industry, consolidating a major Hollywood studio, HBO, CNN and other assets under Paramount, itself recently acquired by David Ellison with backing from his father, Oracle chairman Larry Ellison.

The sale began in October when WBD explored options amid heavy debt and declining cable revenues, initially drawing interest from Paramount and Comcast. Netflix emerged as the board's preferred bidder in December with an $82.7 billion offer for WBD's studio and streaming assets, later sweetened to an all-cash $27.75-per-share deal. However, Paramount returned with a higher bid in late February, ultimately offering $111 billion for all of WBD's assets, including CNN and HGTV, prompting Netflix to withdraw. The Paramount deal won Department of Justice approval in June, but now faces a court-ordered pause pending the states' legal challenge.