California and 11 other US states have filed for a temporary restraining order and preliminary injunction to block the $111 billion Paramount-Warner Bros. Discovery merger from closing while they pursue an antitrust lawsuit against the companies. The states argue the deal would eliminate competition between the two studios, allowing the combined entity to raise prices and reduce output, harming consumers, cinema owners, and cable and satellite distributors. The move sets up an early legal test of whether the merger can proceed as planned, with Paramount Skydance dismissing the states' case as based on a "fundamentally flawed" reading of the facts and law.

The states' motion, filed on Monday evening, asks a federal judge to rule by 22 July, the date by which Paramount has said it will not close the transaction. The underlying lawsuit alleges violations of federal antitrust law across three markets: wide-release theatrical distribution, blockbuster film distribution, and basic cable TV distribution. California Attorney General Rob Bonta said the coalition would "not let Warner Bros. and Paramount merge without a fight," while Paramount countered that delaying the deal would harm entertainment workers already hit by industry disruption. The states must now show a likelihood of success and irreparable harm; a similar coalition previously secured an injunction blocking the Nexstar-Tegna merger in March, a ruling now under appeal.