San Francisco, California - A federal judge in California on Monday ordered Paramount Skydance and Warner Brothers Discovery to temporarily pause their merger while a case brought by multiple states challenging the deal moves forward.

The companies are prohibited from closing their $110 billion deal for 14 days until another hearing is held on August 3 regarding a preliminary injunction, which would prevent Paramount and Warner Brothers from closing the transaction before a final decision is reached.

The states raised "serious questions" about the deal's potential to be anticompetitive, the judge said in her ruling, and continued that "the balance of equities and public interest tip sharply in favor of the Plaintiff States."

Last week, 12 states led by California sued to block the deal in a direct challenge to the Trump administration's Justice Department, which approved the merger last month.

The combined company – which came about after Netflix bowed out of the battle to buy Warner Brothers – would control a sprawling roster of assets, including CNN, Warner Bros. Pictures and the HBO Max streaming service.

The saga has become politically charged, with President Donald Trump publicly saying he would weigh in on the deal as the fate of CNN – a frequent target of the president's ire – hangs in the balance.

California Attorney General Rob Bonta said last week that the combination of two of Hollywood's five major film distributors would lead to "higher prices, lower quality, and less content" for audiences.

"California and our sister states are fighting for free and fair markets, not rigged markets. America has no kings in government or our economy," Bonta said.

The other 11 states joining the suit, all Democratic-led, are Arizona, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon, and Washington.

Paramount pushed back on the suit's allegations, framing their deal as a boon for competition in the media industry.

"The practical effect of this lawsuit is to shield those dominant streaming platforms like Netflix and technology companies from much needed competition," a Paramount spokesperson said last week.