Judge temporarily halts $110 billion Paramount Warner Bros deal

• A U.S. District Judge temporarily halted the $110 billion acquisition of Warner Bros. Discovery by Paramount Skydance Corporation.
• The legal injunction triggers potential daily financial penalties of $7 million for the acquiring company starting in September.
• A 12-state coalition drove the block, citing antitrust concerns over potential monopolization of theatrical and cable distribution.

A federal judge temporarily halted Paramount Skydance Corporation's (NASDAQ:PSKY) $110 billion acquisition of Warner Bros. Discovery (NASDAQ:WBD) to assess market competition.

The 14-day restraining order stalls a transaction that the entertainment companies originally expected to close by July 22.

"History tells the tale of what happens when a few people have great power over markets," said State of California Attorney General Rob Bonta.

The legal delay risks triggering a $7 million daily penalty for the acquiring company beginning September 30.

The suing states allege the combined entity would control roughly one-third of wide-release theatrical film distribution and basic cable programming.

The Justice Department previously cleared the deal without conditions, while the European Union continues separately reviewing the transaction.