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Enforcement ActionLow RiskMultistate

State AGs Secure Temporary Restraining Order to Block Paramount/Warner Bros. Merger

Paramount Skydance CorporationJuly 20, 2026California Attorney General

Summary

A coalition of 12 state attorneys general, led by Colorado AG Phil Weiser, obtained a temporary restraining order from a federal court in California to halt the proposed $110 billion merger of Warner Bros. Discovery, Inc. by Paramount Skydance Corporation. The lawsuit alleges the merger violates Section 7 of the Clayton Act by substantially lessening competition in film distribution, anticipated blockbuster film distribution, and licensing cable TV channels.

Remedy

The court granted a temporary restraining order halting the merger while it considers a preliminary injunction that would block the merger for the duration of the litigation.

Injunction

Contract Impact

In-house legal teams should review vendor and customer agreements for change-of-control clauses, exclusivity provisions, and termination rights triggered by mergers. Specifically, examine contracts with Paramount and Warner Bros. for any provisions that grant rights or impose restrictions based on ownership changes, as the proposed merger could alter competitive dynamics in film distribution and cable licensing. Also review any non-compete or market allocation clauses that may be affected by the combined entity's market power.

Contract Search Terms

merger clausechange of controlantitrust compliancecompetition restrictionexclusivity agreementmarket concentrationdivestiture obligationregulatory approval conditiontermination rights upon merger

Laws Cited

Clayton Act Section 7
15 U.S.C. § 18

Violation Types

Entity Details

Entity

Paramount Skydance Corporation

Industry

Media & Entertainment

Multistate Coalition

Official Sources

Source Evidence

Entity Name
"Paramount Skydance Corporation"
Laws Cited
"Section 7 of the Clayton Act"
Remedy Types
"temporary restraining order halting the merger"
Is Multistate
"coalition of 12 attorneys general"
Summary
"The proposed $110 billion merger — the largest in Hollywood history — would combine two of Hollywood’s five major film distributors and two of the five major owners of basic cable channels."

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