- A federal judge issued a 14-day temporary restraining order halting the Paramount-Warner Bros. merger, which could be extended to 28 days.
- A 12-state coalition, led by California, argues the merger violates antitrust laws, potentially leading to higher prices, fewer movies/TV shows, and reduced competition in cable and theatrical markets.
- The judge set a preliminary injunction hearing for August 3, noting serious legal questions and that the public interest favors blocking the merger while the case proceeds.
- Paramount claims the merger is pro-competitive in streaming against giants like Netflix, but the judge rejected efficiencies in one market offsetting harms in another.
- If the deal isn't closed by September 30, Paramount will owe millions daily to Warner Bros. investors; the injunction phase is critical as it often determines the merger's fate.