States Seek Emergency Injunction to Halt Paramount-Warner Bros. Discovery Merger
California and 11 other states have filed a motion for a temporary restraining order and preliminary injunction to pause the $110 billion Paramount-Warner Bros. Discovery deal, with a hearing set before July 22.
California Attorney General Rob Bonta and attorneys general from 11 other states have asked U.S. District Judge P. Casey Pitts for emergency relief that could block the proposed Paramount Pictures acquisition of Warner Bros. Discovery. The motion seeks a temporary restraining order that would suspend the $110 billion transaction for at least a few weeks, and a preliminary injunction that could extend the halt while the case proceeds.
The states argue the merger would give the combined entity roughly 27% of the wide-release theatrical film distribution market and about 30% of the top-grossing film market, potentially reducing competition in theatrical releases and basic-cable licensing. They contend the deal is “presumptively unlawful” under antitrust law, citing market-share thresholds and the risk of undue concentration.
Paramount and Warner Bros. Discovery maintain the merger is pro-competitive and point to existing federal approvals, including from the Department of Justice. They have assembled a legal team that includes former Solicitor General Paul Clement and antitrust specialist Jeff Kessler.
Legal experts note the case will hinge on how the court defines the relevant market—whether it is limited to theatrical distribution or includes streaming services. Professor William Kovacic of George Washington University said the complaint is “good enough to give Paramount and Warner Bros. a hard time” and suggested a settlement might be pursued.
A related lawsuit by the Writers Guild of America, filed the same day, focuses on labor-market impacts, though the states’ suit does not claim job losses. A hearing on the emergency motion is scheduled for Friday, with a ruling expected before July 22.