US judge puts 110 billion Paramount and Warner Bros mega merger on hold

The potential end of a century-old Hollywood rivalry has been hit with a major roadblock. A US federal judge has temporarily paused the colossal $110 billion merger between Paramount Skydance and Warner Bros Discovery.

District Judge Araceli Martínez-Olguín issued a 14-day restraining order on Monday after a coalition of 12 US states, including New York and California, filed a lawsuit to kill the agreement. Prosecutors argued that combining the two entertainment behemoths would crush market competition, drive up consumer subscription prices, and severely damage cinemas nationwide.

In her ruling, the judge warned that letting the deal proceed right now would make it nearly impossible to "unscramble the egg" if the court later found it violated antitrust laws. The studios fired back, claiming the states completely misunderstood the market and that the merger is a necessary step for surviving the highly competitive streaming sector.

If finalised, the new corporate superpower would account for more than a quarter of all major theatrical releases. It would bring massive film franchises like 'Harry Potter', 'Batman', and 'Top Gun' under one roof, alongside television heavyweights like CNN, MTV, and Nickelodeon.

For now, both companies will be forced to operate separately until the legal battle continues in court this August.