States sue to block $111 billion Paramount-Warner deal
California is leading 12 states in an antitrust challenge to a merger already approved by the Trump administration.
By Maya Lindqvist · Senior Technology Correspondent
2 min read
A coalition of 12 states led by California sued Paramount Skydance and Warner Bros. Discovery to stop their planned $111 billion merger. The challenge targets a deal the Trump administration approved last month and argues the combination would hurt viewers, theaters and TV distributors.
California Attorney General Rob Bonta said the merger would bring together two major entertainment companies in a way that would push prices higher, weaken quality and reduce the amount of film and television available. Bonta said movie theaters, basic cable distributors and audiences across the United States would feel the effects.
The companies did not immediately have a response included in the available account of the lawsuit. The filing marks a state-level effort to block a media consolidation deal that federal officials had allowed to proceed.
What the merger would combine
The proposed transaction would join two of the country’s largest movie studios, according to Ars Technica. It would also combine Paramount+ with HBO Max, bringing the streaming businesses under one corporate owner.
The deal followed earlier competition for Warner Bros. Discovery’s assets. Ars Technica reported that Netflix previously had an agreement to buy Warner Bros. Discovery’s streaming and film studio operations.
Paramount Skydance later prevailed through a hostile takeover bid, according to Ars Technica. The report said the bid was aided by support from the Trump administration, which later approved the merger.
States press antitrust case
Bonta framed the lawsuit as an effort to prevent a reduction in competition across entertainment distribution and production. His office said the merger would affect both businesses that rely on studio content and consumers who watch films and television at home or in theaters.
The complaint adds pressure to a transaction that would reshape the media business by combining legacy studios, cable assets and streaming platforms. The states’ lawsuit seeks to stop the companies from completing the merger despite the federal approval already granted.
The group of states was not fully identified in the available details, beyond California’s lead role. Bonta’s statement focused on the alleged consumer and industry harms rather than naming specific legal remedies beyond blocking the deal.
This story draws on original reporting from Ars Technica.