A US federal judge has temporarily halted the Paramount-Warner Bros merger, granting a 12-state coalition's request for a restraining order amid claims the deal would breach federal antitrust law. Judge Araceli Martinez-Olguin ruled that "serious questions going to the merits remain," keeping the two companies operating as separate, competing businesses while the underlying antitrust challenge proceeds. The ruling matters because such injunctions typically determine the fate of a contested merger outright, and it marked an early setback for the deal after previous attempts by Paramount+ subscribers to block it had failed.

The 14-day restraining order, which could be extended to up to 28 days, followed a hearing on Friday and was issued on Monday, with Paramount having previously agreed not to close the deal before 22 July. The states, led by California, are now pursuing a preliminary injunction to block the merger until the case is decided on its merits, with a hearing scheduled for 3 August in the US District Court for the Northern District of California, though that date could be pushed back by agreement. California attorney general Rob Bonta called the ruling a "critical first win," while Paramount said it remained confident the states' antitrust claims were "without merit" and vowed to continue defending the transaction.