The basics:

• Federal judge temporarily blocks Paramount, Warner Bros.’ proposed $110B merger
• New Jersey joined 11 other states in challenging the deal
• States argue the merger would harm competition, consumers
• Paramount says the transaction is lawful, pro-competitive

A federal judge temporarily halted the proposed $110 billion merger between Paramount Skydance and Warner Bros. Discovery. The pause gives an early win to a coalition of states led by California, and including New Jersey, seeking to block the deal.

U.S. District Judge Araceli Martínez-Olguín of the Northern District of California issued the temporary restraining order. It prevents the companies from closing the merger while the court considers whether to issue a longer-term injunction.

The states argue the merger would weaken competition in the entertainment industry. They say it would potentially lead to higher prices; fewer content choices; and less leverage for movie theaters, distributors and creators.

California Attorney General Rob Bonta filed the lawsuit. New Jersey Attorney General Jennifer Davenport is among the 12 attorneys general who also joined the challenge. As NJBIZ previously reported, the states contend the merger would combine two of Hollywood’s largest film distributors and major cable programmers. The combined company would hold too much control over key parts of the market, they say.

Meanwhile, Paramount has rejected those claims. The company argues the transaction would create a stronger competitor in a changing media landscape. They say it would benefit consumers, workers as well as creators.

‘A major win for consumers’

“Today’s order, which temporarily blocks this unlawful merger while our case continues, is a major win for consumers,” said Davenport. “It is the first step in what I hope will be a total victory for New Jerseyans, who can ill-afford another price hike caused by opportunistic billionaires. Make no mistake: we will continue to stand up in court against corporate monopolists who drive up prices and harm New Jerseyans.”

“My office and attorneys general nationwide have secured an emergency order blocking the unlawful merger of Warner Bros. and Paramount,” said Bonta. “This is a critical first win in our case to ensure this megamerger never sees the light of day.”

‘Arguments are without merit’

In a statement to NJBIZ, a Paramount spokesperson said, “We are grateful for the Court’s swift order on the motion for a TRO. Like the timing agreement to which we were willing to stipulate, this TRO preserves the status quo while the Court considers the antitrust issues presented.

“We are confident the evidence will demonstrate that the State AGs’ antitrust arguments are without merit as their alleged markets and claims of anticompetitive effects are without any basis in modern market realities. This merger is lawful, pro-competitive, and will benefit consumers, creators, workers, and the entertainment industry. We will continue to vigorously defend the transaction and will look forward to the hearings on the substance of the State AGs’ action.”

Paramount plays a key role in New Jersey’s film and television industry boom. In October 2025, the production company signed a 10-year lease for 285,000 square feet at Bayonne’s 1888 Studios. The site is currently under construction.