Judge Pauses Paramount Skydance and Warner Bros. Discovery Merger After 12 States Sue Over Antitrust Concerns

A judge issued a temporary restraining order that paused Paramount Skydance's planned $110 billion merger with Warner Bros. Discovery. The order responded to a lawsuit filed by 12 states. Business Insider reported that the pause leaves the transaction in limbo weeks after shareholders approved key terms.

Paramount Skydance would owe Warner Bros. Discovery a $7 billion breakup fee if the deal collapses and has agreed to pay shareholders a ticking fee of roughly $7 million per day beginning after September 30. Paramount merged with Skydance in August 2025, six years after the Viacom-CBS combination.

Warner Bros. Discovery had earlier planned to sell its studio and streaming assets to Netflix before Paramount intervened. Twelve Paramount employees interviewed by Business Insider expressed divided views on the delay.

A research staffer said, "I'm definitely worried about impending layoffs post-merger. " Two Warner Bros. Discovery employees noted they would gain from stock grants if the transaction closes. The Writers Guild of America has filed a separate antitrust suit against Paramount.

Spokespeople for both companies did not respond to requests for comment.