A US federal court has temporarily blocked the proposed merger between Paramount and Warner Bros, granting a two-week stay after 12 states, led by California, filed a lawsuit arguing the deal would reduce competition in theatrical distribution and cable TV markets.The order, issued by Judge Araceli Martinez-Olguin, indicates the court believes there's a reasonable chance the lawsuit will succeed.

The 12 states, including New York, Arizona, and Washington, claim the merged entity would control one-third of both markets, violating antitrust laws from 1914.Paramount has dismissed the suit as 'without merit,' asserting the merger is pro-competitive.

The case will return to court in August, with ongoing opposition from industry figures like Pedro Pascal, Emma Thompson, and filmmakers such as David Fincher.Meanwhile, the UK has hinted at potential regulatory scrutiny, though the merger has already been approved in Australia and New Zealand.The deal, valued at $110 billion, includes Warner Bros' film studio, HBO, DC Comics, and iconic franchises like Harry Potter and Game of Thrones.Paramount faces a $600 million penalty per quarter if the merger isn't completed by September 30.