12 States File Antitrust Lawsuit to Block Paramounts $81 B Takeover of Warner Bros. Discovery

On July 12, 2026, California and eleven other states launched a federal antitrust suit to stop Paramount Skydance’s planned $81 billion acquisition of Warner Bros. Discovery. The coalition argues that uniting the two giants would collapse competition in Hollywood and jeopardize jobs across the entertainment sector.

California Attorney General Rob Bonta, who leads the lawsuit, demanded that Paramount and Warner Bros. Discovery suspend the transaction until the court decides the case. If the companies refuse, the states will seek a temporary restraining order. Bonta warned that “the unlawful merger of these two entertainment behemoths would lead to higher prices, lower quality, and less content for film and television, harming movie theaters, basic cable distributors, and ultimately, audiences on every sofa and movie theater seat in the U.S.”

The states backing the suit are Arizona, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon, and Washington. Paramount Skydance countered that the lawsuit “distorts settled antitrust law” and that the deal would strengthen competition against dominant streaming and technology platforms that have harmed theatrical exhibition and employment. The company pledged to “vigorously defend” the transaction, while Warner Bros. Discovery deferred to Paramount for comment.

The merger would merge Paramount’s Paramount+ and CBS with Warner’s HBO Max, Warner Bros. studios, DC Entertainment, CNN, and global linear networks such as TBS and TNT. Shareholders approved the deal in April, and the Department of Justice (DOJ) endorsed it on June 12. The transaction, valued at roughly $111 billion including debt, equates to $31 per share. Paramount has committed a 25‑cent per share “ticking fee” for each quarter beyond September 30 if the deal does not close, and a $7 billion regulatory termination fee.

Regulatory approvals have been secured in China, Canada, and Australia, while reviews in the European Union and the United Kingdom remain pending. The DOJ’s statement highlighted that the merger would “increase competition across the media and entertainment ecosystem, with benefits for American consumers and workers,” and that politics would not influence the regulatory process.

Industry observers warn that the lawsuit could push back the merger’s projected third‑quarter 2026 closing. Paramount and Warner argue that the combined entity will deliver more content to consumers and bolster their position against streaming giants. Critics, including thousands of industry professionals, contend that further consolidation would erode competition, lower quality, and trigger job losses.

This lawsuit marks the first major state antitrust action against the Paramount–Warner deal. Both sides are now preparing for litigation that could decide whether the merger proceeds or is halted.