A US federal judge has issued a temporary restraining order blocking Paramount Skydance's $111 billion (£87 billion) acquisition of Warner Bros. Discovery, delivering an early victory to a coalition of states seeking to stop the deal. The order, granted by US District Judge Araceli Martínez-Olguín in California, prevents the companies from completing the merger or consolidating operations while the case proceeds, and comes despite the deal having already been approved by the Trump administration.

Twelve states led by California sued last week, arguing the merger would unduly reduce competition by uniting two of Hollywood's five major film studios and two of the five biggest basic cable owners. The judge noted the combined firm would hold roughly a 27 percent share of wide-release theatrical distribution and pointed to a sharp rise in market concentration, concluding the states had shown enough to presume the deal illegal under antitrust law. The 14-day restraining order can be extended or converted into a preliminary injunction, with a hearing set for 3 August; Paramount is expected to appeal to the Ninth Circuit.