Search & fact check with cited sources for What are the details of the federal judge's decision to freeze Paramount Skydance's $111 billion acquisition of Warner Bros. Discovery, including the temporary restraining order's duration, the antitrust allegations brought by 12 state a

The 12-State Antitrust Lawsuit

A coalition of 12 state attorneys general, led by California AG Rob Bonta, filed the federal antitrust suit on July 13, 2026, defying the DOJ's approval . The participating states are: California, Arizona, Colorado, Connecticut, Massachusetts, Minnesota, New York, Pennsylvania, Maryland, New Jersey, Illinois, and the District of Columbia (the list varies slightly by source; all include California, New York, Colorado, and Massachusetts as core members) .

The suit alleges the $110–111 billion merger violates the Clayton Act, claiming it will:

• Reduce competition in film and TV licensing
• Give the combined entity excessive market power in both theatrical distribution and cable licensing
• Lead to higher prices and fewer choices for consumers
• Theater owners have separately expressed concern the merger would result in fewer movies and narrower consumer choice

Paramount's Counterarguments

Paramount blasted the lawsuit, saying it "distorts settled antitrust law and is based on a misrepresentation of competition in the entertainment industry today" . The company argues that:

• The merger creates a "stronger competitor" against dominant tech and streaming rivals like Netflix, Amazon, and Apple
• Blocking the deal would "shield" Netflix and big tech companies from "much-needed competition"
• The DOJ already found no harm to competition — the states are second-guessing that conclusion

Financial Stakes: The Ticking Fee

Per the merger agreement filed with the SEC, a "ticking fee" of $0.00277778 per share per day kicks in if the deal hasn't closed by September 30, 2026, capped at $0.25 per share per 90-day period . Multiple sources estimate this works out to roughly $7 million per day for Paramount owner David Ellison, or about $650 million per quarter . Paramount also faces a $7 billion termination fee if regulators ultimately block the deal .

Regulatory Status

Key Timeline

• Feb 27, 2026 — Deal announced at ~$110.9 billion ($31/share cash)
• June 12, 2026 — DOJ approves the merger
• July 1, 2026 — Paramount submits EU remedies
• July 13, 2026 — 12 state AGs file suit and seek TRO
• July 17, 2026 — Hearing held (just over one hour) in Oakland
• July 20, 2026 — Judge Martínez-Olguín grants 14-day TRO
• July 22, 2026 — Deadline for judge to rule on preliminary injunction
• Sept 30, 2026 — Ticking fee triggers if deal not closed