A US federal judge has issued a temporary restraining order halting Paramount Skydance's proposed $110bn (£85bn) merger with Warner Bros Discovery, following a lawsuit brought by a coalition of 12 US states. The states, including California and New York, argue the tie-up would harm competition and push up prices for cinemas, cable distributors and audiences. The ruling represents a significant setback for both companies as they attempt to consolidate in an increasingly competitive streaming market.

District judge Araceli Martínez-Olguín granted a 14-day injunction preventing either company from finalising or beginning to integrate the businesses, saying the states had raised "serious questions" about the merger's impact on film distribution. She warned that letting the deal proceed now could make it "extraordinarily difficult to unscramble the egg" should the courts later decide to block it, adding that public interest in antitrust enforcement outweighed any delay. Combined, Paramount and Warner Bros own franchises including Harry Potter, Batman, Mission: Impossible and Top Gun, plus channels such as CNN, MTV and Nickelodeon, and the merged firm would control over a quarter of major film releases if approved. The next hearing is scheduled for August.