A bipartisan coalition of 12 U.S. states, led by California Attorney General Rob Bonta, has filed a lawsuit in federal court to block the $110 billion merger of Paramount Skydance and Warner Bros. Discovery. The legal action, filed in California’s Northern District, seeks to halt what is described as the largest media consolidation in Hollywood history.
The state attorneys general argue that the acquisition would significantly harm competition in the film distribution and cable television industries. The lawsuit alleges that the merger would lead to higher prices for consumers, lower quality content, and fewer choices for movies and television. Additionally, the group claims the deal would negatively impact movie theaters, pay TV and basic cable distributors, and the overall American entertainment industry, while potentially leading to thousands of job losses.
The proposed deal would unite two of the nation's largest media companies and two of Hollywood's last five legacy studios. This challenge comes after the Justice Department approved the merger last month without conditions or divestitures following an eight-month review. The agreement was reached in February after a bidding war between David Ellison’s Paramount Skydance and Netflix.