US states move to block Paramount's $110bn acquisition of Warner Bros Discovery

Paramount Skydance Corp. plans to acquire Warner Bros. Discovery in a deal valued at roughly $110‑111 billion, which would combine two of Hollywood's largest studios and franchises such as Harry Potter, Superman and Mission Impossible.

State attorneys general in California, New York and several other states are preparing a coordinated antitrust lawsuit to stop the merger, arguing it would reduce competition, raise streaming prices and lead to significant job losses. California Attorney General Rob Bonta is leading the effort and has said the investigation remains active.

The prospect of the lawsuit sent both companies' shares lower – Warner Bros. Discovery fell about 3.6% and Paramount about 6.7% after the news. Paramount has responded by filing a motion to dismiss the lawsuit, calling the complaint “long on rhetoric and fear‑mongering” and saying the plaintiffs lack standing.

Industry groups, actors and creators have also voiced opposition, citing concerns over reduced production jobs and diminished content diversity. The merger is under review by the U.S. Justice Department and European regulators, while the federal stance appears less aggressive than the state actions. If a court were to issue an injunction, Paramount could face daily penalties of roughly $6.9 million for delays.