Paramount CEO Blames State AG Antitrust Lawsuit for Delaying $111 Billion Merger

Paramount Pictures chief David Ellison said the antitrust lawsuit filed by 12 state attorneys general is preventing the $111 billion Warner Bros. Discovery merger from closing. He warned that a daily $7 million penalty fee could begin accruing on October 1 if the case is not resolved, adding that the company has offered concessions and is willing to work with the states to protect employees and investors, including pension and retirement funds.

The lawsuit, filed on July 13 by attorneys general in California, New York and other states, seeks to block the merger on grounds that it would reduce competition, raise prices and lead to job cuts. A temporary restraining order was issued, and a two-week trial is scheduled to begin on March 2, 2027.

Paramount’s legal team indicated that all settlement options are on the table, but no negotiations have begun. The company also noted that it recently received $38 million in California tax credits for production activities.

California Attorney General Rob Bonta’s office responded that the merger would increase costs, lower wages and diminish the number of movies and TV shows, and reiterated that the case is likely to succeed on its merits under federal antitrust law.