Twelve US states sue to block $110B Paramount-WBD merger

A coalition of 12 US state attorneys general, led by California Attorney General Rob Bonta, has filed a lawsuit to block the $110B merger between Paramount Skydance and Warner Bros. Discovery (WBD). The coalition alleges the deal violates the Clayton Act, which prohibits mergers that may substantially lessen competition or tend to create a monopoly, and would harm movie theaters, basic cable distributors, and audiences.

The lawsuit argues the merger would lessen competition in three areas: wide release theatrical film distribution, blockbuster movie distribution, and basic cable licensing. If approved, the states say the combined company would control:

• 27% of the U.S. film distribution market
• 30% of blockbuster movie distribution
• 27% of the basic cable channel market

California Attorney General Rob Bonta said, “Consolidation here not only leads to higher prices — it also leads to fewer opportunities for important stories to come to life, and fewer ways for audiences to encounter stories, ideas, and perspectives beyond their own experiences.” The U.S. Department of Justice (the federal executive department that enforces federal antitrust law), however, has already cleared the transaction, saying it is not likely to result in harm to competition or consumers. Paramount has defended the deal, saying the combined film studios would release 30 movies a year.

The deal received approval from WBD shareholders in April, and Paramount CEO David Ellison said in May that the transaction was on track to close by September. The 11 states joining California in the lawsuit include New York, New Jersey, and Washington.

Why it matters

The lawsuit marks a major state-level challenge to media consolidation, threatening to derail a $110B merger that has already cleared federal regulatory review.