Twelve states sue to block Paramount’s Warner Bros. Discovery merger
The coalition argues the mega-merger would crush competition in cinemas, even after the DOJ already gave it the green light
A group of 12 states has launched an antitrust lawsuit to stop Paramount’s acquisition of Warner Bros. Discovery, contending the merger would lessen competition and harm consumers even though the deal has already received approval from the US Department of Justice.
The lawsuit, led by California Attorney General Rob Bonta and joined by 11 other Democratic attorneys general, argues the merger would negatively affect multiple segments of the entertainment industry.
The states claim combining the two media companies would reduce competition in wide-release films, blockbuster distribution, and cable channel licensing, resulting in higher prices, fewer entertainment choices, declining theatrical releases, and lower-quality content for audiences.
Paramount vowed to vigorously defend the transaction, insisting it complies with antitrust law and enhances competition by creating a stronger rival to major streaming companies like Netflix. The company said the states misunderstand today’s competitive media landscape and stressed that regulators across numerous jurisdictions, including the DOJ, have already approved the merger.
The news moving money, markets, and the world—before your day starts.
Daily. Free. Join 34,000+ readers across crypto, finance, and policy.
State officials said they pursued the case because they believe the Trump administration has backed away from aggressively policing large mergers, while critics of the DOJ’s approval alleged political favoritism influenced the federal review.
The coalition is seeking to delay the merger’s completion and has threatened to pursue emergency court action if the companies move forward before the litigation is resolved.