A federal judge issued a 14-day restraining order Monday to halt the merger between Paramount Skydance and Warner Bros. Discovery. The planned transaction is valued at $110 billion.
Twelve states filed an antitrust lawsuit to stop the deal, arguing it would harm competition. The plaintiffs contend the consolidation of major film studios and cable networks will reduce consumer choice and increase prices.
The judge stated the lawsuit raises serious questions about the legality of the transaction. The deal would have created a primary competitor to media giants such as Comcast’s NBCUniversal. The court scheduled a hearing for a longer-term injunction in early August.