The biggest legal challenge yet to Paramount’s proposed acquisition of Warner Bros. Discovery has arrived. A coalition of 12 state attorneys general, led by California Attorney General Rob Bonta, filed suit on Monday, July 13, to stop the $110 billion Paramount-Warner Bros. Discovery merger, arguing the transaction would reduce competition in theatrical-film distribution and basic cable licensing while hurting both consumers and entertainment workers.
According to CBS News, the lawsuit, filed under the Clayton Act, seeks to block the merger before it closes. If Paramount and Warner Bros. Discovery refuse to pause the transaction voluntarily, Bonta’s office said the states will seek a temporary restraining order.
“We have antitrust laws and merger controls for a reason, because competition is the lifeblood of a healthy and vibrant economy,” Bonta said during a press conference announcing the lawsuit. “Competition pushes companies to produce their best work, to innovate, and to offer fair and reasonable prices.”
The states—Arizona, California, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon, and Washington—argue the merger would reduce employment opportunities across Hollywood while leading to higher cable bills, more expensive movie tickets, and fewer choices for viewers.
According to the complaint, the combined company would control nearly one-third of U.S. cable programming and more than one-third of blockbuster theatrical releases, giving Paramount unprecedented leverage across multiple entertainment businesses.
Paramount immediately rejected the allegations.
“The lawsuit filed by the state attorneys general, in the most generous light, reflects a fundamentally flawed application of the antitrust laws and is wrong on both the facts and the law,” a Paramount Skydance spokesperson said in a statement.
The filing marks the latest twist in a merger saga that has stretched across months. Paramount ultimately secured an agreement to acquire Warner Bros. Discovery after defeating Netflix in a dramatic bidding war. Netflix had originally reached an agreement to acquire Warner’s studio and streaming assets before Paramount repeatedly increased its offer, eventually convincing Warner’s board to switch course.
Even after shareholder approval, the merger has faced mounting resistance. Paramount has already defended the transaction against a consumer lawsuit, calls for expanded federal review, and criticism over billions of dollars in financing from Middle Eastern sovereign wealth funds.
Paramount has maintained that the opposite is true. The company says the combined business will be better equipped to compete with larger technology and streaming companies while expanding theatrical releases to at least 30 films annually. “This transaction uniquely brings together complementary strengths,” Paramount said previously, arguing the merger would create “more avenues” for creators.
