A coalition of 12 U.S. states, led by California Attorney General Rob Bonta, has filed a lawsuit seeking to block Paramount Skydance’s proposed $110 billion acquisition of Warner Bros. Discovery, arguing the deal would create an unlawful media monopoly and significantly reduce competition across the entertainment industry.
The lawsuit contends that the merger would combine two of Hollywood’s five major film studios and two of the five largest basic cable companies, giving the combined company control of nearly one-third of the U.S. theatrical film market and one-third of basic cable programming. The states argue the consolidation would likely lead to higher prices, fewer movies and television programs, reduced content quality, job losses and fewer opportunities for creators.
The legal challenge comes despite the merger receiving shareholder approval and support from the U.S. Department of Justice. Paramount has defended the transaction, arguing that combining with Warner Bros. Discovery is necessary to compete more effectively against streaming giants such as Netflix and Amazon, while maintaining the lawsuit misrepresents the realities of today’s media market.
The coalition is asking the federal court to prevent the companies from completing the merger while the case proceeds and has indicated it will seek emergency relief if necessary. If successful, the lawsuit could significantly delay or potentially derail what would become one of the largest media mergers in history.
