Federal judge temporarily blocks merger between Warner Bros. Discovery and Paramount Skydance

(NBC, KYMA) - Paramount Skydance's takeover of Warner Bros. Discovery hit a roadblock Monday after a federal judge temporarily paused the proposed merger.

U.S. District Judge Araceli Martínez-Olguín granted the request for the pause made by a coalition of 12 states who sued to thwart the $110 billion deal.

The group argues the merger will reduce competition in Hollywood, including the wide-release of theatrical films.

Per the order, the pause will be in effect for 14 days.

In response to the ruling, California Attorney General Rob Bonta, who is part of the coalition, issued a statement saying in part, "My office and attorneys general nationwide have secured an emergency order blocking the unlawful merger of Warner Bros. and Paramount. This is a critical first win in our case to ensure this megamerger never sees the light of day."

Paramount also issued a statement following the ruling saying they are "confident the evidence will demonstrate that the State AGs’ antitrust arguments are without merit as their alleged markets and claims of anticompetitive effects are without any basis in modern market realities."

"This merger is lawful, pro-competitive, and will benefit consumers, creators, workers, and the entertainment industry. We will continue to vigorously defend the transaction and will look forward to the hearings on the substance of the State AGs' action," according to the statement.

Judge Martínez-Olguín also set an August 3 court date for a hearing on the states' preliminary injunction motion.