State Attorneys General Seek Injunction to Block Paramount-Warner Bros. Merger
Twelve Democratic state attorneys general have filed a lawsuit demanding a preliminary injunction to halt the Paramount-Warner Bros. Discovery merger, citing antitrust concerns in cable and film markets.
A coalition of twelve state attorneys general, led by California, filed a legal challenge on July 13 to stop the $111 billion Paramount-Warner Bros. Discovery merger. The states argue the deal would reduce competition in basic cable, tentpole theatrical releases and wide-release distribution by combining two of the top three cable programmers and two of the top five film distributors.
U.S. District Judge Araceli Martinez-Olguin granted a temporary restraining order that pauses the merger for at least 14 days and extended it through Aug. 17. She scheduled a hearing on the states’ request for a preliminary injunction for Aug. 3, though Paramount has asked to postpone the hearing to the week of Aug. 17 or 24 and to hold a three-day evidentiary hearing.
“At best, Defendants’ proof regarding these robust, dynamic markets creates disputes regarding the facts and legality of the Transaction’s market effects,” the judge wrote, adding that the states have shown “serious questions going to the merits” that favor injunctive relief.
Paramount called the lawsuit “one of the weakest merger challenges in modern antitrust history” and said it distorts settled antitrust law. The company maintains that its cable line-ups are complementary, not substitutes, and that the merger would increase theatrical output without harming theater pricing. It also points to approvals from regulators in 65 jurisdictions, describing the deal as pro-competition and pro-consumer.
The merger’s proponents argue that combining Paramount+ with HBO Max is necessary to achieve scale against streaming rivals such as Netflix, Disney and Amazon. However, the judge rejected the argument that efficiencies in streaming offset alleged harms in cable and film markets.
California Attorney General Rob Bonta said the states would consider a settlement that includes structural remedies, but dismissed the notion that spinning off CNN would satisfy competition concerns.
Other litigation includes an antitrust suit by the Writers Guild of America and a separate case by a Paramount shareholder alleging improper political dealings, which the company has denied.
The outcome of the state lawsuit remains uncertain, and the parties have not disclosed any concrete concessions that might resolve the dispute.