A federal judge has temporarily blocked Paramount's proposed merger with Warner Bros. Discovery, granting a 14-day restraining order while a legal challenge moves forward. The lawsuit, filed by California and 11 other states, argues the deal would give the combined company too much control over the theatrical movie and cable TV markets, violating antitrust laws. The judge said the states presented convincing evidence that the merger could significantly reduce competition and ordered both companies to stop any efforts to complete or integrate the deal for now. Paramount insists the merger is legal and says combining the two studios would make them more competitive with streaming giants like Netflix, Disney , and Prime Video. A hearing on whether to extend the block is scheduled for August 3, while the delay could become costly—Paramount faces a $7 million-per-day fee to Warner Bros. Discovery if the deal isn't completed after September 30.