"The extension provides additional time for the involved parties to establish a schedule and format for legal proceedings."

Judge Extends Block on Paramount-Warner Bros. Discovery Merger

U.S. District Judge Araceli Martínez-Olguín has extended a temporary restraining order (TRO) halting the proposed $111 billion merger between Paramount and Warner Bros. Discovery. The extension, granted on Thursday, prevents the deal from closing until at least August 18, 2025. The initial TRO, issued on July 31, 2025, had been set to expire on August 3.

Legal Proceedings

The extension provides additional time for the involved parties to establish a schedule and format for legal proceedings. The judge cited the need to resolve two pending motions for preliminary injunctions, disputes over the hearing schedule, and the defendants' stated willingness to abide by the TRO for several weeks as grounds for the extension.

A hearing is scheduled for August 3, 2025, to consider arguments on the states' request for a preliminary injunction, which would block the merger indefinitely.

The Writers Guild of America (WGA) motion for an injunction will be resolved on the same schedule.

Paramount requested a three-day evidentiary hearing in late August to cross-examine the states' witnesses. The studio offered to extend the restraining order to accommodate that schedule. The states opposing the merger urged the judge to rule on the injunction without a multi-day hearing, arguing that such a hearing is inappropriate at the preliminary injunction stage and that Paramount is essentially seeking a trial without adequate notice.

Parties and Allegations

A coalition of 12 state attorneys general alleges the deal violates the Clayton Act by substantially reducing competition in basic cable and theatrical distribution markets. Separately, the Writers Guild of America filed a lawsuit claiming the merger would suppress writers' compensation and homogenize content.

The judge ordered Paramount and the plaintiffs—including the state attorneys general and the WGA—to meet and confer to attempt to reach a consensus on a path forward. A joint report is due by July 24. The judge also ruled that the WGA will be permitted to participate in the August 3 hearing.

Deal Timeline

Paramount faces a September 30 deadline to close the deal. Under the terms of the merger agreement, a ticking fee of $6.9 million per day would apply after that date. Paramount has offered not to close the deal for up to a month if the court schedules preliminary injunction proceedings by late August.

If a preliminary injunction is not granted, Paramount has indicated it will close the deal, leaving the states to attempt to unwind the transaction.

The judge noted that she cannot extend the TRO further and that if the parties agree to maintain it, they may stipulate to an extended briefing and hearing schedule.