Judge Temporarily Blocks Paramount-Warner Deal

The proposed $81 billion merger of Paramount and Warner Bros. Discovery hit its first significant speed bump when a federal judge in California granted a temporary restraining order that prohibits the companies from closing the deal. The court said that during the pause it would consider whether the merger should remain blocked pending the resolution of an antitrust challenge brought by a dozen states. The 14-day restraining order means Paramount will fall short on its hopes to have the deal closed before the end of the month. If the court later grants the states a preliminary injunction, the companies would be barred from closing the merger while the states’ antitrust lawsuit proceeds. A hearing for a preliminary injunction has been scheduled for Aug. 3.