A federal judge in California has issued a 14-day restraining order, temporarily blocking the proposed $81 billion merger between Paramount and Warner Bros. Discovery. The order halts the companies from finalizing the deal, which has faced an antitrust challenge from a dozen states.

The court will use this pause to consider whether the merger should remain blocked while the antitrust lawsuit is resolved. This development dashes Paramount's hopes of closing the deal by the end of the month.

If the court later grants a preliminary injunction, the merger would be barred from proceeding during the antitrust litigation. A hearing for this preliminary injunction is scheduled for August 3.