Earlier this year, the streaming and entertainment industry witnessed one of its most high-stakes megadeals ever, stunning industry observers. Not only is it historic in its size but also predicted to disrupt Hollywood and the media business as we know it.

After years of Warner Bros. Discovery (WBD) struggling under the weight of billions of dollars in debt, compounded by declining cable viewership and fierce competition from streaming platforms, the company has been considering major strategic changes, including selling its entertainment assets to one of its rivals.

In December, Netflix announced it would acquire WBD’s studios and streaming for $82.7 billion. But in a surprise eleventh-hour move in late February, the David Ellison-run Paramount became the winner of this bidding war, offering $111 billion to acquire all of WBD's assets, including its studios, HBO, streaming platforms, games, and TV networks such as CNN and HGTV.

However, a federal judge just paused the deal after a lawsuit was filed on July 13 by a coalition of 12 state attorneys general. This adds another layer of complexity to an already intricate transaction involving significant financial burdens and regulatory hurdles.