Paramount-Warner Bros. merger again postponed after a A federal judge has extended a temporary restraining order.

The decision halted Paramount Skydance’s proposed $110 billion acquisition of a premier American multinational entertainment and media company-Warner Bros. Discovery, pushing the temporary freeze through August 17.

A California-led coalition of states have sued to block the deal, saying it would harm competition in film and television, hurting theaters and cable companies.

Group of 12 state Attorneys General, co-led by California AG Rob Bonta and Washington AG Nick Brown, filed suit on July 13 to block the megamerger under Section 7 of the Clayton Act.

The Writers Guild of America has filed a separate lawsuit alleging the deal would decrease demand for screenwriting work.

U.S. District Judge Araceli Martínez-Olguín in Oakland, California, previously paused the deal through August 3, when she would have held a hearing on whether to postpone the deal's closing for longer.

Paramount has asked for a three-day hearing in August where it can present evidence the deal bolsters competition before the judge decides on a longer pause.

The plaintiffs contend that combining two of Hollywood’s major film studios and basic cable operators would give the merged entity roughly 27% of US wide-release theatrical distribution and control over more than 50 popular cable channels. The states argue this consolidation would raise prices for cable subscribers and moviegoers while reducing opportunities for creatives and crew.

The move gives Paramount Skydance more time to argue against a potential months-long pause while the case plays out.

The company has said such a prolonged delay would plunge the deal into uncertainty and could cost it more than $1 billion.

Paramount-Skydance faces a target close date of September 30, 2026. Pushing the timeline past that date triggers substantial "ticking fee" obligations payable to shareholders, adding significant financial pressure as litigation continues.

keeping up the defence stance, one of the largest multinational mass media and entertainment conglomerates in the world- Paramount maintains the merger is lawful and pro-competitive, arguing that merging legacy media assets is essential to compete effectively against tech giants and streaming platforms.