12 US states sue to block Paramount's $110 billion Warner Bros. Discovery acquisition

A coalition of 12 US states has filed a lawsuit to block Paramount Skydance's proposed $110 billion acquisition of Warner Bros. Discovery, alleging the deal would harm competition in film distribution and cable television. The states, led by California Attorney General Rob Bonta, argue the merger would give the combined company nearly 27% of the movie distribution market and over 30% of major theatrical releases, as well as significant control over basic cable channels. Source: CNN Source: Portafolio

The lawsuit

The complaint, filed in the Northern District of California, invokes Section 7 of the Clayton Act, which prohibits mergers that substantially lessen competition. Source: Infobae Alongside California, the plaintiffs include Arizona, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon, and Washington — all with Democratic attorneys general. Source: Clarin The states have requested that Paramount and Warner Bros. delay closing the deal until the court rules, and have threatened to seek a temporary restraining order if they proceed. Source: CNN

Conflicting views

Paramount has vowed to "vigorously" fight the lawsuit, calling it "wrong on the facts and the law." Source: CNN The company argues that the merger would create a stronger competitor against tech giants like Netflix and Disney, and could lead to increased content production. Source: Portafolio Notably, the U.S. Department of Justice (DOJ) approved the deal in June, concluding it would not harm competition. Source: Infobae However, critics have accused the DOJ of political favoritism given Paramount's ties to the Trump administration. Source: CNN

What's next

The European Union is reviewing the deal with a decision deadline of July 22. Source: Infobae Meanwhile, the lawsuit adds uncertainty to a timeline that Paramount hoped would close by the third quarter of 2025. The company faces financial penalties if the deal is not completed by September 30. Source: Clarin