A bipartisan coalition of US state attorneys general filed a lawsuit on Monday to block the $110 billion merger of Paramount Skydance and Warner Bros Discovery over antitrust concerns.
Led by California Attorney General Rob Bonta, the 12-state coalition argues the deal will harm market competition, reduce content quality, and cause thousands of layoffs.
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Legal Challenge Filed in California
The legal challenge was filed in the US District Court for the Northern District of California.
It follows the deal's approval by the US Department of Justice, though it still faces scrutiny from European and British regulators.
"Today, I am leading a coalition of states in challenging the proposed merger of Warner Bros and Paramount and asking the court to block the deal," said Bonta.
The coalition includes Arizona, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon, and Washington.
They claim the transaction will negatively impact consumers, basic cable distributors, and movie theaters.
"In this country, no one is above the law," said Bonta.
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"With this lawsuit, California and our sister states are fighting for free and fair markets, not rigged markets.
America has no kings in government or our economy."
Paramount Skydance and chief executive David Ellison countered that the merger would preserve the traditional theatrical landscape and enhance competition against dominant tech firms.
"This deal is pro-competitive, resulting in a stronger company better positioned to compete against dominant technology platforms," the company said in a statement.
The company aims to finalize the transaction by September 30 to avoid a quarterly ticking fee of $0.25 per share.
Political figures had previously questioned the timing of regulatory clearances, given connections between the Ellison family and the Trump administration.
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Senator Elizabeth Warren noted that coordinating a multi-state legal effort required substantial time and resources.
