Iowa and Montana ask Supreme Court to halt Democratic states' antitrust case against Paramount-Warner merger
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Iowa and Montana ask Supreme Court to halt Democratic states' antitrust case against Paramount-Warner merger

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Republican attorneys general from Iowa and Montana filed a petition with the U.S. Supreme Court seeking to dismiss a lawsuit filed by twelve Democratic-led states that aims to block Paramount's acquisition of Warner Bros. Discovery.

Iowa Attorney General Brenna Bird and Montana Attorney General Austin Knudsen submitted a petition to the U.S. Supreme Court on Aug. 25, asking the Court to intervene and dismiss a federal antitrust suit brought by twelve Democratic-led states that seeks to stop Paramount Global’s proposed $110 billion merger with Warner Bros. Discovery. The filing argues that the case presents a “controversy between sovereigns” that can only be resolved by the Court, which has original jurisdiction over disputes among states.

The petition names California and the other eleven states involved in the original antitrust action as defendants and seeks an order to enjoin their suit. Iowa and Montana contend that the lawsuit threatens their economies, citing potential losses for thousands of employees and consumers in both states.

Legal scholars note that the Supreme Court rarely hears original-jurisdiction cases that do not involve traditional interstate disputes such as boundary or water-right issues, making the petition a long-shot. Erik Gordon, a professor at the University of Michigan’s Ross School of Business, described the move as “political grandstanding.”

Norm Eisen, an attorney who has worked on the opposition campaign, said there is “no valid legal basis” for the filing and predicted the Court would reject it. He suggested the states could instead file an amicus brief in the district court handling the merger case.

The original antitrust action, filed in July, alleges that the Paramount-Warner deal would reduce competition in theatrical, blockbuster film and basic-cable markets. A federal judge granted a temporary restraining order, and the merger has been paused pending trial, scheduled for March 2, 2027. Paramount faces a daily “ticking fee” of $7 million if the merger is delayed beyond the trial date.

California Attorney General Rob Bonta’s office said it is reviewing the Iowa-Montana filing. The dispute adds to ongoing settlement discussions between the California AG and Paramount, which have been stalled over allegations of leaked confidential information.

The Supreme Court’s decision on the petition, if any, will determine whether the twelve-state antitrust case proceeds or is dismissed, potentially influencing the timeline for the Paramount-Warner merger.

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Variety

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