A group of 12 US states, led by California, has initiated a federal lawsuit to stop the $110 billion acquisition of Warner Bros. Discovery by Paramount Skydance. The states argue that this massive deal would stifle competition within the film and television sectors, resulting in diminished quality and higher costs for consumers.
This legal challenge arrives shortly after the Justice Department under the Trump administration permitted the merger to proceed without demanding any structural concessions. California Attorney General Rob Bonta emphasized that the coalition is committed to ensuring fair market conditions. The lawsuit asserts that the union violates the Clayton Act by significantly reducing competition, noting the combined entity would possess nearly 27 percent of theatrical film distribution and cable licensing.
Joining California in this effort are Arizona, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon, and Washington. The states are demanding that the companies pause the transaction while the case moves through the courts, threatening a temporary restraining order if necessary.
The deal has faced intense scrutiny from industry professionals, with hundreds of creators signing a letter expressing concerns over further market consolidation. While federal regulators in the US have cleared the path for Paramount CEO David Ellison—whose acquisition was largely funded by his father, Larry Ellison—the European Commission is still conducting its own antitrust review with a decision expected by July 22.
