A coalition of 12 Democratic state attorneys general, led by California, has mounted a major legal challenge to halt Paramount Skydance’s historic $110 billion acquisition of Warner Bros. Discovery.
The antitrust lawsuit, filed in a Northern California federal court, warns that merging two of Hollywood’s “Big Five” studios would create an anti-competitive media titan.
Opponents argue the combined entity would dominate roughly 27% of both theatrical film distribution and basic cable channel licensing, allowing it to control major assets like CNN, HBO Max, and Warner Bros. Pictures.
The legal action represents a direct clash with the Trump administration, whose Justice Department approved the transaction last month. Critics have pointed out the political undertones of the approval, noting that Paramount CEO David Ellison’s father, billionaire Larry Ellison, is a prominent ally of President Donald Trump.
California Attorney General Rob Bonta stated that the massive consolidation would ultimately hurt the public by restricting choice.
”In this country, no one is above the law,” Bonta said. “California and our sister states are fighting for free and fair markets, not rigged markets. America has no kings in government or our economy.”
State attorneys general from Arizona, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon, and Washington have joined California in the lawsuit, alleging violations of the federal Clayton Act.
Paramount has strongly rejected the states’ claims, arguing that blocking the deal would harm consumer choices rather than protect them.
”The practical effect of this lawsuit is to shield those dominant streaming platforms like Netflix and technology companies from much needed competition,” a Paramount spokesperson said.
To ease regulatory worries, Paramount has pledged to release at least 30 films annually for full theatrical runs. However, analysts suggest the lawsuit faces an uphill battle, as state attorneys general may lack the jurisdictional clout to permanently unravel a federally approved merger.
The coalition has demanded that both corporations halt the closing of the deal pending the litigation, warning they will seek a temporary restraining order if necessary.