12 States Sue to Block $111 Billion Paramount-Warner Bros. Merger
7 verified5 unconfirmed
A coalition of 12 state attorneys general, led by California, filed a federal lawsuit Monday seeking to block Paramount Skydance’s $111 billion acquisition of Warner Bros. Discovery. The states argue the merger would violate antitrust law by reducing competition in theatrical film distribution and cable licensing, leading to higher prices and fewer content choices for consumers. The lawsuit, filed in the U.S. District Court for the Northern District of California, asks a judge to stop the deal before its expected close. Paramount responded sharply, calling the suit a distortion of antitrust law and arguing the merger is necessary to compete with dominant technology platforms like Netflix. The Justice Department approved the deal in June without requiring any asset sales or concessions, but the merger still awaits approval from U.K. regulators and the Federal Communications Commission. Under the merger agreement, Paramount must pay Warner Bros. shareholders roughly $650 million per quarter if the deal is not completed by Sept. 30.
What’s verified
A coalition of 12 state attorneys general, led by California Attorney General Rob Bonta, filed a lawsuit on July 13, 2026, to block the merger of Paramount Skydance and Warner Bros. Discovery.
The states allege the merger would harm competition, raise prices, reduce content quality, and limit movie availability for theaters and audiences.
The lawsuit was filed in the U.S. District Court for the Northern District of California.
The merger is valued at approximately $111 billion, including debt.
The U.S. Justice Department approved the deal in June 2026 without requiring divestitures or concessions.
Paramount argues the merger is pro-competitive and necessary to compete with streaming and technology companies such as Netflix.
If the deal is not completed by Sept. 30, 2026, Paramount is required to pay Warner Bros. shareholders a ticking fee of roughly $650 million per financial quarter.
Not yet confirmed
Details of the financing structure, including the planned investment from sovereign wealth funds of Saudi Arabia, Qatar, and the United Arab Emirates as non-voting investors, come from a single source.
A separate consumer lawsuit filed in April 2026 to block the deal is reported by only one source.
Reports of internal Justice Department disagreements over the speed of the approval process are mentioned in only one source.
Whether the combined company would carry $80 billion in new debt or a different amount is not confirmed across sources.
The exact number of regulatory jurisdictions that have already approved the deal is not consistently stated.
Key figures
Rob Bonta, California Attorney General
David Ellison, CEO and chairman of Paramount Skydance
Larry Ellison, Oracle co-founder and father of David Ellison
Donald Trump, President of the United States
Makan Delrahim, Paramount chief legal officer
David Zaslav, CEO of Warner Bros. Discovery
Lisa Nandy, UK Culture Secretary
Brendan Carr, FCC Chairman
Sources: Variety, The Guardian, NPR, The Hollywood Reporter
