12 States File Antitrust Lawsuit to Block Paramount-Warner Bros. Merger
8 verified4 unconfirmed
A coalition of 12 state attorneys general filed an antitrust lawsuit on Monday to block the proposed $111 billion merger between Paramount and Warner Bros. Discovery. The lawsuit, led by California, argues that combining two of the nation’s five major film distributors would harm competition, raise prices for consumers, and reduce the diversity and number of theatrical releases. The suit also contends that the deal would give the combined company control over a significant share of wide-release films and basic cable channels, leading to fewer options for audiences and worse terms for theater owners. Trade group Cinema United, which represents movie theaters, praised the legal challenge, warning of lasting harm to local businesses. The Writers Guild of America also voiced strong opposition, stating the merger would threaten jobs and the industry. Paramount responded by calling the lawsuit a flawed application of antitrust law and argued that blocking the deal would only benefit dominant streaming platforms like Netflix and large tech companies.
What’s verified
Twelve state attorneys general filed an antitrust lawsuit on Monday, July 13, to block the merger of Paramount and Warner Bros. Discovery.
The merger is valued at $111 billion.
The lawsuit was led by California and joined by Arizona, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon, and Washington.
The suit argues the merger would reduce competition in wide-release theatrical films, top-grossing film distribution, and basic cable channel licensing.
Cinema United, a trade organization for movie theaters, issued a statement supporting the lawsuit.
The Writers Guild of America West and East both released statements opposing the merger.
Paramount stated the lawsuit should be rejected, arguing it would shield Netflix and tech companies from competition.
The U.S. Department of Justice previously said it would not challenge the merger, stating it would increase competition.
Not yet confirmed
One source reported that New York Mayor Zohran Mamdani posted support for the lawsuit on social media.
One source reported that Paramount was considering shifting operations out of California in response to potential litigation, but no decision had been made.
The specific timeline for closing the merger before a September 30 deadline and the possibility of a judge granting an injunction before July 22 are mentioned in only one source.
The lawsuit’s claim that CEO David Ellison’s promise to release 30 films theatrically per year is not legally enforceable appears in only one source.
Key figures
Michael O’Leary, president and CEO of Cinema United
Michele Mulroney, president of Writers Guild of America West
Tom Fontana, president of Writers Guild of America East
Alvaro Bedoya, senior advisor at American Economic Liberties Project and former FTC commissioner
Rob Bonta, California District Attorney
David Ellison, CEO of Paramount Skydance
Sources: The Hollywood Reporter, indiewire.com
