12 States Sue to Block Paramount’s Proposed Warner Bros. Acquisition

A coalition of 12 states sued July 13 to block Paramount Skydance’s proposed acquisition of Warner Bros. Discovery, opening a major antitrust challenge to a deal that would combine film studios, television networks, streaming services and news and sports assets.

California Attorney General Rob Bonta was identified as leading the state lawsuit. The states argue the transaction could extinguish competition across entertainment markets, affecting audiences, movie theaters and industry jobs. Paramount disputes that interpretation, saying the lawsuit mischaracterizes antitrust law and that the combination would create a stronger competitor to dominant streaming and technology companies.

The Writers Guild of America West and East filed a separate federal complaint July 14. The guild alleges the proposed merger would reduce competition in episodic television and streaming writing, television writing deals, and screenwriting for major theatrical films.

The Justice Department said June 12 that it had completed its antitrust investigation and concluded the transaction was unlikely to harm competition or American consumers in streaming video, linear television, or theatrical film development, production and distribution. The department said investigators reviewed more than two million documents from more than 80 custodians. The court has not issued a final decision on whether the merger may proceed, and the state and guild challenges remain unresolved.