Paramount faces multi-state antitrust challenge over $110 billion Warner Bros acquisition

California, New York and a coalition of other US states are preparing a lawsuit aimed at blocking Paramount's proposed $110 billion purchase of Warner Bros. Discovery. The states allege the merger would reduce competition in the film and streaming markets, potentially harming studios, theatres and creative workers.

Paramount has reportedly offered concessions to the states in an effort to avoid the litigation, though the specific measures have not been disclosed. The company has also indicated willingness to divest certain children’s‑TV assets to satisfy regulators. The merger remains under review by the U.S. Department of Justice, which is expected to issue a decision soon. If the lawsuit proceeds, it could delay closing of the deal and trigger additional financial obligations for Paramount.