12 US states sue to block Paramount’s $110 billion Warner acquisition
8 reported
Twelve US states have filed a lawsuit to block Paramount Skydance's $110 billion acquisition of Warner Bros. Discovery, the largest-ever Hollywood merger, arguing it would harm competition and raise prices. The California-led legal action was filed in Oakland federal court on Monday, challenging Paramount CEO David Ellison's ambitions to rival Netflix and Disney. The lawsuit comes after the US Justice Department green-lighted the transaction without conditions, stating it was unlikely to harm competition. California Attorney General Rob Bonta, leading the case, called the merger "unlawful" and said it would result in "higher prices, lower quality, and less content." The states argue the deal would violate antitrust law, creating a "media behemoth" that would pocket more than a quarter of revenue from wide-release films and basic cable. Paramount responded that the combination would create a "stronger competitor" against dominant streaming and technology platforms. The buyout is also undergoing antitrust reviews outside the US, including in Europe.
What’s reported
Twelve US states sued to block Paramount Skydance's $110 billion acquisition of Warner Bros. Discovery.
The lawsuit was filed in Oakland federal court on Monday, led by California.
The US Justice Department cleared the transaction without conditions, saying it was unlikely to harm competition.
California Attorney General Rob Bonta called the merger "unlawful," predicting higher prices, lower quality, and less content.
The states' lawsuit argues the deal violates antitrust law and would create a "media behemoth."
Paramount said the merger would create a "stronger competitor" against dominant streaming and tech platforms.
The buyout is also under antitrust review outside the US, including in Europe.
The coalition of states includes Arizona, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon, and Washington — all Democrats.
Key figures
David Ellison, Paramount CEO
Rob Bonta, California Attorney General
Kris Mayes, Arizona Attorney General
Larry Ellison, Oracle co-founder and father of David Ellison
Donald Trump, US President
Sources: dw.com
