States File Antitrust Suit to Block Paramount's $111 Billion Warner Bros. Acquisition
California Attorney General Rob Bonta and 11 other state attorneys general have sued to stop Paramount's proposed purchase of Warner Bros. Discovery, arguing it would breach antitrust law and harm competition in film and television markets.
California Attorney General Rob Bonta, joined by attorneys general from 11 other states, filed a 37-page antitrust lawsuit on Monday in federal court in San Francisco to block Paramount Global’s planned $111 billion acquisition of Warner Bros. Discovery. The complaint alleges the merger would violate the Clayton Act by substantially lessening competition in theatrical film distribution, basic cable television and streaming services.
"The proposed merger would extinguish competition, resulting in higher prices, lower content quality, and fewer movies and TV shows," Bonta said at a news conference in the Hollywood Hills.
Paramount responded that the suit is a “fundamentally flawed application of the antitrust laws” and pledged to defend the transaction, asserting that the deal would enhance competition in the media marketplace.
The states contend that combining the two historic studios would give the merged entity control of roughly 27 % of the wide-release film market and about the same share of basic-cable channel licensing, pushing the industry toward concentration among four major players that would dominate 86 % of widely released films.
Industry groups, including the theater trade organization Cinema United and the Writers Guild of America West, voiced support for the lawsuit, warning that further consolidation could reduce the number of films produced and threaten local movie theaters that serve as community hubs.
The U.S. Justice Department has already approved the merger, stating it is likely to promote competition. The states have asked the court to delay the closing of the deal pending resolution of the litigation and indicated they would seek a temporary restraining order if Paramount proceeds.
Legal analysts note that while the lawsuit faces significant hurdles, the rapidly evolving entertainment landscape—marked by streaming services such as Netflix, Amazon and Apple—may diminish the traditional studios’ market power, potentially influencing the case’s outcome.