Paramount–WBD merger on pause as judge issues temporary restraining order | CNN Business

A federal judge has granted a temporary restraining order pausing the Paramount–Warner Bros. Discovery merger.

Judge Araceli Martínez-Olguín’s Monday ruling puts the deal on hold for two weeks while she considers a broader antitrust legal challenge brought by a coalition of 12 state attorneys general, led by California AG Rob Bonta.

The judge may choose to extend the order for two more weeks. She said she will move quickly to consider the states’ request for a preliminary injunction, which could freeze the merger in place for months and pose a major setback for Paramount.

Martínez-Olguín will hold a hearing on August 3 to consider imposing the injunction. Lawyers for Paramount say they will present evidence refuting the states’ argument that the deal violates antitrust law.

The early August timing is significant because Paramount is on the verge of taking over WBD, including CNN.