Paramount‑Warner Bros. Discovery $110 bn merger faces US state antitrust lawsuits and delay

Paramount Skydance is pursuing a $110 billion acquisition of Warner Bros. Discovery, which would combine two of Hollywood’s four major studios. The deal is under intense scrutiny from U.S. state attorneys general. California Attorney General Rob Bonta is leading a coalition that includes New York, Oregon and other states, which is preparing to file a multistate antitrust suit as early as next week. Critics argue the merger would curb competition, raise streaming prices, lead to job cuts and reduce the variety of films and news content.

In Oregon, Attorney General Dan Rayfield has asked a court to impose a 60‑day pause on the closing and to compel Paramount to produce documents on its lobbying and the so‑called “Project Warrior.” The court hearing is scheduled for early next week. Paramount has already indicated it will not close the transaction before July 22, the deadline set by the European Commission’s Phase 1 review, and any further delay could trigger a quarterly “ticking fee” of $0.25 per Warner share – about $650 million per quarter – and increase the company’s debt burden, projected at roughly $80‑86 billion.

Regulatory scrutiny also extends abroad. The United Kingdom’s culture minister Lisa Nandy has signaled a willingness to intervene, and antitrust authorities in the EU, Canada, Australia and other jurisdictions have cleared the deal or are reviewing it. The outcome of the U.S. state actions will be pivotal in determining whether the merger can close as planned or be postponed indefinitely.