Multiple Lawsuits Challenge Paramount's Planned Acquisition of Warner Bros. Discovery

A coalition of 12 state attorneys general, including California and New York, has sued to stop Paramount Global from completing its $111 billion acquisition of Warner Bros. Discovery, citing potential harm to consumers and the entertainment sector. The Writers Guild of America filed a separate antitrust suit, stating the merger would increase market concentration, reduce the variety of film and television projects and pressure writers' compensation.

Investors in Paramount have also taken legal action in the Delaware Court of Chancery, alleging that CEO David Ellison and his father Larry Ellison engaged in improper agreements with the Trump administration to facilitate the deal, including promises to alter CNN coverage and a $16 million settlement to the former president.

A group of Paramount+ subscribers has joined the opposition, arguing the merger could lead to higher subscription fees and fewer viewing options; their complaint has been consolidated with the broader antitrust case brought by the states.

Paramount’s legal team counters that competition will remain robust, pointing to rivals such as Disney and Universal, and asserts the transaction will boost theatrical output without raising prices for theaters.

An 80-minute hearing in Oakland on Friday before U.S. District Judge Araceli Martínez-Olguín addressed a request from the states for a 28-day temporary restraining order. The judge indicated a decision on the emergency motion would be issued by July 22. If the merger is not completed by September 30, Paramount could be required to pay investors $7 million per day.

Paramount has described the antitrust challenge as “one of the weakest merger challenges in modern antitrust history,” while the states maintain that the deal poses significant risks to competition and industry workers.