A group of 12 state attorneys general has filed a lawsuit to stop the merger between Paramount Skydance and Warner Bros. Discovery (WBD). The coalition, led by California Attorney General Rob Bonta, claims the deal would crush competition across theatrical film distribution, blockbuster movie releases, and basic cable licensing.
As reported by TechCrunch, the lawsuit argues the acquisition violates the Clayton Act, a federal law that blocks mergers likely to reduce competition or create a monopoly. The states say the combined company would control:
- 27% of the U.S. film distribution market
- 30% of blockbuster movie distribution
- 27% of the basic cable channel market
That level of market control, the states argue, would leave fewer choices for theaters, cable providers, and viewers alike.
The deal would bring together two major film studios and merge streaming platforms Paramount+ and Max into a single entity. On the TV side, it would create one of the biggest network portfolios in the country, combining Paramount’s CBS and MTV with WBD’s CNN and HBO. Paramount CEO David Ellison had said in May that the transaction was on track to close by September.
The merger has already attracted criticism from filmmakers, actors, and entertainment industry workers who say it would accelerate the consolidation already reshaping U.S. media. Paramount pushed back on those concerns, arguing the combined studios would release around 30 films a year. The deal also cleared a key hurdle earlier this year when the U.S. Department of Justice signed off, saying it was unlikely to harm competition or consumers. WBD shareholders approved it in April.
But the state-level challenge adds a new layer of legal risk that could delay or derail the timeline entirely. Bonta framed the lawsuit in broader terms than just market share. “Consolidation here not only leads to higher prices, it also leads to fewer opportunities for important stories to come to life, and fewer ways for audiences to encounter stories, ideas, and perspectives beyond their own experiences,” he said in a statement. “America has no kings in government or our economy.”
The 11 states joining California are Arizona, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon, and Washington. Paramount and WBD did not respond to requests for comment at the time of publication.
The lawsuit reflects a wider trend of state governments stepping in on antitrust issues where federal regulators have held back. With media consolidation accelerating across studios, streaming, and broadcast, state-level legal challenges are becoming a more common tool to contest deals that clear Washington but still raise competition concerns at a local and regional level.