12 US states sue to block $110 billion Paramount‑Warner merger

A coalition of twelve Democratic state attorneys general, led by California Attorney General Rob Bonta, filed an antitrust lawsuit in the U.S. District Court for the Northern District of California to stop Paramount Skydance’s $110‑$111 billion acquisition of Warner Bros. Discovery. The complaint alleges the deal violates the Clayton Act by giving the combined company control of about 27 % of wide‑release theatrical distribution, roughly 30 % of the blockbuster‑film market and a similar share of basic‑cable licensing, which could raise prices, reduce content variety and harm movie theaters, cable providers and consumers.

The states‑led group includes Arizona, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon and Washington. While the U.S. Justice Department approved the merger in June, the states argue it would substantially lessen competition. Paramount has called the suit “wrong on both the facts and the law,” saying the merger is needed to compete with streaming giants and will produce at least 30 movies a year, benefiting workers.

California has also hired the law firm Milbank to provide high‑powered antitrust counsel, anticipating a clash with Paramount’s legal team that includes Jeffrey Kessler and former Solicitor General Paul Clement. The plaintiffs seek a temporary restraining order to pause the deal while the case proceeds, a delay that could affect financing and trigger quarterly fees to Warner shareholders.