Paramount has just encountered a big obstacle on its winding path toward acquiring Warner Bros. Discovery. Indeed, the merger process has just been temporarily suspended.

This decision, issued by U.S. District Judge Araceli Martínez-Olguín of the Northern District of California, was prompted by concerns raised by 12 U.S. states, which believe that the merger of the two companies will undermine competition in the market.

As a result, this decision, accompanied by a preliminary injunction, will remain in effect for 14 days. During this period, the acquisition cannot be finalized. A hearing is scheduled for August 3, 2026, to consider the states’ motion for a preliminary injunction.

This is bad news for Paramount, which will have to pay compensation to Warner Bros. shareholders for each day the acquisition is delayed beyond September 30, 2026. Since the compensation is 25% per share, it could cost Paramount up to $7 million per day.