Twelve US states challenge $111bn Paramount-Warner merger in court

Twelve Democratic state attorneys general filed a lawsuit on Monday to stop the $111bn merger between Paramount Skydance and Warner Bros Discovery. A court hearing on Friday will determine whether a judge grants a temporary pause to the deal, which already received approval from the US Department of Justice in June.

The coalition, led by California attorney general Rob Bonta, accuses the companies of violating the Clayton Act by illegally concentrating the film and cable television markets. “In our complaint, it’s really clean, clear, concise,” Bonta said. “It’s precise with the data points that we’ve shared and courts have traditionally accepted exactly those types of arguments and that kind of data as a basis for finding a merger to be presumptively unlawful.”

For international investors and media markets, the lawsuit underscores a fractured US regulatory environment where federal approval no longer guarantees a deal's survival. Washington attorney general Nick Brown noted an unusual surge in public concern over the transaction's potential to reduce streaming competition and drive up consumer costs. Even if the states fail to secure a permanent block, the litigation could scuttle the merger entirely by extending timelines and inflating legal costs.

Beyond pricing, the states warn the merger would shrink the volume and diversity of content available to global audiences. The combination would place CBS News and CNN under a single corporate umbrella. “It also means less news,” Bonta said. “Less journalists doing less investigative journalism, telling fewer stories, doing less truth telling and truth seeking.” Reduced output from a combined Hollywood giant would directly affect international licensing markets that rely on a steady stream of American programming.

The economic stakes are highly visible at the local level. New Jersey attorney general Jennifer Davenport pointed to her state’s burgeoning film sector, which includes a planned $1bn Netflix facility and Paramount’s role as the anchor tenant for the 58-acre 1888 Studios. “We just knew that it was bad for New Jerseyans,” Davenport said, arguing that a lack of competition harms both consumers and the creative workforce.

The legal challenge also exposes political fault lines in US antitrust enforcement. Bonta expressed disappointment that no Republican attorneys general joined the suit, suggesting potential pressure from Donald Trump. Brown described a broader corporate lobbying dynamic as “undoubtedly a pay-for-play system to curry favor with the president.” Despite this, Brown insisted the coalition's focus remains strictly on market harm. “We want it to be blocked and that’s what we’re asking for,” he said. “We don't simply want to just delay it. We want to stop it.”