LOS ANGELES — A coalition of 12 U.S. state attorneys general has launched an antitrust challenge seeking to block Paramount Skydance's proposed $110 billion acquisition of Warner Bros. Discovery, intensifying scrutiny of what would become the largest merger in Hollywood history and setting up a major legal battle over media consolidation.
The lawsuit, led by California Attorney General Rob Bonta and joined by attorneys general including those from New York, alleges the transaction would substantially reduce competition by combining two of Hollywood's five major film studios and two leading owners of basic cable networks. According to the complaint, the merged company would control nearly one-third of U.S. theatrical film distribution and basic cable programming, potentially leading to higher prices, reduced content, and diminished quality for consumers.
The coalition asked the companies to delay closing the transaction while the case proceeds. After they declined, the states filed an emergency motion seeking a temporary restraining order and preliminary injunction to prevent the merger from being completed before judicial review.
In a statement announcing the case, Bonta said the proposed merger "would harm movie theaters, basic cable distributors, and ultimately, audiences," arguing that the companies should not complete the transaction until a court evaluates the antitrust claims.
Paramount Skydance rejected the allegations, saying the lawsuit misrepresents the competitive landscape of the entertainment industry. The company said the combination would create a stronger competitor to major streaming and technology platforms and argued that delaying the deal would harm consumers, creative talent and investment in film and television production.
The legal challenge comes despite the U.S. Department of Justice's Antitrust Division concluding in June that the proposed acquisition was unlikely to harm competition in streaming, linear television or theatrical film distribution following an eight-month investigation.
The merger also remains subject to regulatory review in several overseas jurisdictions. Analysts say the state lawsuit introduces significant uncertainty over the transaction's timetable, even as the companies continue to pursue regulatory approvals.
The case has drawn attention across Hollywood, where filmmakers, labor groups and other industry participants have expressed differing views over whether further consolidation would strengthen traditional media companies against technology rivals or reduce competition within the entertainment business.
The lawsuit is pending in federal court, where the states are seeking an order preventing the companies from completing the transaction until the antitrust challenge is resolved.
