Dozens of states file antitrust suit to halt Paramount-Warner merger

A coalition of attorneys general from Arizona, California, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon and Washington filed a lawsuit on Monday seeking to stop Paramount Skydance's proposed acquisition of Warner Bros. Discovery. The states argue the merger would violate the Clayton Act by reducing competition in the film and cable markets, potentially raising ticket and subscription prices and limiting job opportunities for industry workers.

"We have antitrust laws and merger controls for a reason, because competition is the lifeblood of a healthy and vibrant economy," California Attorney General Rob Bonta said at a press conference.

The suit seeks a court order to pause the transaction until the litigation is resolved, and the states indicated they will request a temporary restraining order if the companies do not comply.

Paramount Skydance responded that the lawsuit misapplies antitrust law and is incorrect on factual and legal grounds. A company spokesperson said the filing reflects a "fundamentally flawed application of the antitrust laws." Warner Bros. declined to comment directly, referring inquiries to Paramount Skydance.

If completed, the combined entity would control roughly one-third of cable programming and a similar share of blockbuster film releases, according to the California AG's office. Paramount has indicated it expects to close the deal in the third quarter and has agreed to pay a quarterly fee to shareholders if the merger is delayed beyond September 30.

The Justice Department ended its own review in June, concluding the deal was unlikely to harm competition, while other regulators in the European Union and the United Kingdom continue their assessments.