A U.S.district judge has temporarily paused the $110 billion merger between Paramount Skydance and Warner Bros.Discovery, citing a lawsuit from 12 state attorneys general who argue the deal would harm competition.

The coalition, led by California Attorney General Rob Bonta, claims the merger would reduce competition in theatrical film distribution and basic cable licensing, potentially harming movie theaters, distributors, and audiences.The 14-day pause allows the states to seek further legal action, which could delay the deal significantly.Paramount’s spokesperson dismissed the antitrust claims as unfounded, asserting the merger would benefit consumers and the entertainment industry.The deal, which would combine Paramount+ and HBO Max streaming platforms, faces scrutiny from industry professionals who warn of media consolidation.

Legal challenges threaten Paramount’s plans to compete with streaming giants like Netflix, raising concerns about market dominance and creative opportunities.