Twelve state attorneys general filed an antitrust lawsuit on July 13 seeking to block the proposed $110 billion acquisition of Warner Bros. Discovery by Paramount Skydance. The coalition, led by California Attorney General Rob Bonta, includes Arizona, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon, and Washington.
The suit alleges the transaction violates the Clayton Act. The states argue a combined Paramount and Warner Bros. entity would control nearly one-third of cable programming and more than one-third of the blockbuster film market, reducing competition in ways they say would raise ticket prices, lower wages for industry workers, and limit consumer choice. "Competition pushes companies to produce their best work, to innovate, and to offer fair and reasonable prices," Bonta said, according to CBS News.
The lawsuit arrives after the U.S. Department of Justice cleared the deal in June. Paramount called the states' action "fundamentally flawed," saying the merger would produce "a stronger company." The company maintained it still expects the deal to close before September 30, per CNBC. A $650 million quarterly ticking fee applies if that deadline is missed.
Opposition has mounted beyond state capitals. The Writers Guild of America filed its own separate lawsuit, and more than 5,000 Hollywood professionals signed an opposition letter in April. A completed deal would create the largest Hollywood content company outside Disney, at a moment when the entire industry is still reconfiguring around streaming.