Court to Decide Soon on States' Bid to Halt Paramount-warner Merger

WHO:

Gizmodo - The Writers Guild of America (WGA) has filed a suit against the merger, stating it will harm the film and television industry.

Variety - Judge Araceli Martinez-Olguin is overseeing the case regarding the merger.

Deadline - The challenge involves a coalition of state attorneys general.

WHAT:

Gizmodo - The WGA's lawsuit claims the merger will "increase concentration and decrease competition in [television and film writing] markets," resulting in reduced quantity and variety of theatrical films and series, and downward pressure on writers’ compensation.

Gizmodo - Paramount investors have filed a lawsuit in Delaware Chancery Court, alleging illegal deals made by CEO David Ellison and his father Larry with the Trump administration to facilitate the merger.

Gizmodo - The investors cite a $16 million settlement to Trump in 2025 and another $20 million in pro-conservative advertising as harmful to the reputations of their news outlets.

Fox Business - A temporary restraining order (TRO) hearing took place, with arguments from both sides regarding the merger.

CNN - The judge declined to rule on the TRO during the hearing, stating she would issue a ruling by July 22.

CNN - California Attorney General Rob Bonta expressed that there are no negotiations taking place with Paramount regarding a possible settlement, stating, "We are suing. We are in litigation."

CNN - Bonta emphasized that a divestiture of CNN would not resolve the lawsuit, stating, "Absolutely, 1,000%, no. Not yesterday, not today, not tomorrow. Hell no."

Fox Business - The lawsuit claims the merger would "lead to higher prices, lower quality, and less content for film and television, harming movie theaters, basic cable distributors, and ultimately, audiences on every sofa and movie theater seat in the U.S."

Fox Business - Paramount is seeking to move forward as soon as possible to avoid exorbitant ticking fees, a term for charges that accrue as the merger is delayed.

Fox Business - The Justice Department (DOJ) announced it has closed its antitrust investigation into Paramount Skydance's proposed acquisition of WBD, concluding the transaction is not likely to harm competition or American consumers.

Fox Business - The Antitrust Division said its eight-month review examined more than two million documents and found the deal could strengthen competition across the media and entertainment industry, including in streaming video, traditional television, and theatrical film distribution.

Fox Business - California Attorney General Rob Bonta is leading a group of 12 state attorneys general challenging the merger, claiming it would "lead to higher prices, lower quality, and less content for film and television."

Fox Business - The lawsuit claims the merger violates Section 7 of the Clayton Act, which prohibits mergers that may substantially lessen competition or create a monopoly.

Fox Business - Paramount CEO David Ellison is seeking to acquire Warner Bros. Discovery in a $111 billion deal that was expected to close during the third quarter of 2026.

Variety - A state coalition is seeking a restraining order to pause the Paramount-Warner Bros. Discovery merger.

Deadline - The judge did not issue a ruling on the emergency motion to pause the transaction during the hearing.

WHERE:

Deadline - The hearing took place in Oakland.

WHEN:

Variety - The judge indicated she would issue a ruling by next Wednesday.

Deadline - The judge stated she would rule by July 22.

WHY:

CNN - California Attorney General Rob Bonta stated that the lawsuit is focused on the wide-release theatrical film market, the blockbuster theatrical release market, and the cable channel market, emphasizing that a divestiture of CNN would not resolve the case.

HOW:

Gizmodo - The lawsuit from Paramount+ subscribers has been folded into the federal antitrust case from the state AGs, claiming potential price hikes and reduced viewing options.

CNN - Bonta criticized the notion of a CNN spin-off as a solution, asserting, "It’s not adequate to address the concerns we set forth in our complaint."

CNN - Bonta indicated that there are no negotiations taking place with Paramount about a possible settlement, stating, "We are suing. We are in litigation."

Fox Business - Paramount argued during the hearing that the merger would actually increase competition, while the state insisted it would harm the industry and give too much power to the company.

Deadline - The arguments from both sides were presented during an 80-minute hearing.

(UPDATED July 18, 2026 19:19 UTC)

The Writers Guild of America has filed a lawsuit against a merger, arguing that it will harm the film and television industry by increasing concentration and decreasing competition, which could lead to fewer theatrical films and series and lower compensation for writers. In a separate legal action, Paramount investors are suing in Delaware, alleging that CEO David Ellison and his father made illegal deals with the Trump administration to facilitate the merger, including a $16 million settlement and $20 million in pro-conservative advertising that they claim damaged their news outlets' reputations. Additionally, a lawsuit from Paramount+ subscribers has been incorporated into a federal antitrust case, raising concerns about potential price hikes and fewer viewing options.

(UPDATED July 18, 2026 16:14 UTC)

A temporary restraining order hearing took place regarding the merger, but the judge declined to make a ruling during the session, promising to issue a decision by July 22. California Attorney General Rob Bonta made it clear that there are no negotiations with Paramount for a settlement, stating, "We are suing. We are in litigation," and he firmly rejected the idea that a divestiture of CNN would resolve the lawsuit. Bonta further criticized the notion of a CNN spin-off as a solution, asserting, "It’s not adequate to address the concerns we set forth in our complaint."

(UPDATED July 18, 2026 05:43 UTC)

The Justice Department has concluded its antitrust investigation into Paramount Skydance's proposed acquisition of WBD, determining that the deal is unlikely to harm competition or American consumers after an extensive review of over two million documents. Meanwhile, California Attorney General Rob Bonta has filed a lawsuit claiming that the merger could lead to higher prices and lower quality in the film and television markets, emphasizing that a divestiture of CNN would not resolve the case. Bonta also confirmed that there are currently no negotiations with Paramount regarding a possible settlement, stating, "We are suing. We are in litigation."

(UPDATED July 17, 2026 22:21 UTC)

California Attorney General Rob Bonta is leading a coalition of 12 state attorneys general in a legal challenge against Paramount's proposed $111 billion acquisition of Warner Bros. Discovery, arguing that the merger would result in higher prices, lower quality, and less content for film and television. The lawsuit claims this merger violates Section 7 of the Clayton Act, which is designed to prevent mergers that could significantly reduce competition or create monopolies. During the hearing, Paramount's CEO David Ellison contended that the merger would enhance competition, while the state maintained that it would ultimately harm the industry and concentrate too much power in one company.

(UPDATED July 17, 2026 20:23 UTC)

A coalition of state attorneys general is seeking a restraining order to pause the merger between Paramount and Warner Bros. Discovery, with Judge Araceli Martinez-Olguin overseeing the case in Oakland. During an 80-minute hearing, the judge did not issue a ruling on the emergency motion but indicated she would make a decision by July 22. Both sides presented their arguments, and now the industry awaits the judge's ruling.