State attorneys general prepare antitrust suit against Paramount's Warner Bros. Discovery deal

Lawyers for a group of states are finalising a multistate antitrust lawsuit that targets Paramount Global's proposed purchase of Warner Bros. Discovery, sources familiar with the process said. The filing is expected next week, though the exact date could change.

If the suit proceeds, it may disrupt Paramount's plan to assume control of Warner later this summer, a timeline the company has been aiming to meet in the coming weeks. The lawsuit would follow the Justice Department's approval of the deal last month, highlighting that federal clearance does not prevent states from pursuing separate antitrust actions.

State officials have argued that the merger could lessen competition in the entertainment and news sectors, a claim Paramount has denied. The company said it continues to work constructively with regulators and is prepared to address any legitimate antitrust concerns.

"We continue to engage constructively with regulators, including State Attorneys General, and are prepared to address any legitimate antitrust issues. We are confident this transaction raises no such concerns," a Paramount spokesperson said.

California Attorney General Rob Bonta, who has voiced concerns about the combination, indicated the investigation remains active but offered no new details.

"The Paramount acquisition of Warner Bros. remains an active investigation, and we do not have any update to share at this time," Bonta’s office said.

In Oregon, the attorney general's office sought a court order to enforce a subpoena related to its review of the deal and asked for a 60-day pause before the merger could close. A hearing on the request was delayed until the following Monday.

Paramount also faces scrutiny abroad; the United Kingdom's culture minister said she was "minded to intervene" in the transaction. The company noted that antitrust authorities in several countries have cleared the deal and argued that it would increase competition and consumer choice.

"Antitrust authorities around the world have carefully reviewed this transaction, clearing it or concluding that it does not violate any competition laws," a spokesperson told CNN. "That regulatory record underscores what the facts, the law and the economics make clear: this transaction will create a stronger challenger to dominant global streaming and technology platforms, expand consumer choice, increase investment in premium content and theatrical distribution, and create more opportunities for creators and workers."

The multistate suit would join other recent state-led challenges to large media mergers, such as the halted Nexstar acquisition of Tegna earlier this year.