A coalition of 12 US state attorneys general led by California Attorney General Rob Bonta filed a lawsuit on July 13 seeking to block the $110 billion merger of Paramount Skydance and Warner Bros Discovery. The suit was filed in the US District Court for the Northern District of California and argues the deal would reduce competition, raise prices, lower quality, and reduce content availability, harming movie theaters and cable distributors across the US [1, 2].

“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 US,” Bonta said, adding, “In this country, no one is above the law. 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.” [1]

The lawsuit challenges the combination of two major film studios (Paramount and Warner Bros), streaming platforms Paramount+ and HBO Max, and large TV networks including CBS, CNN, MTV, BET, and TNT [3, 2]. The Department of Justice approved the merger in mid-June 2026 after an antitrust review, stating it is unlikely to harm competition or consumers [1, 3, 2]. However, UK and European regulators have yet to grant approval. The European Commission extended its provisional deadline to July 22, with Paramount submitting concessions as part of the review [1, 3, 2].

Hollywood actors Ben Stiller and Mark Ruffalo have publicly opposed the deal, warning it would consolidate the media landscape further, reduce creator opportunities and jobs, increase consumer costs, and limit audience choice globally [2].

Warner Bros Discovery shareholders have grown anxious as the stock price dropped about 8% since February amid deal uncertainty. Paramount agreed to pay about $7 million daily in damages to WBD shareholders for any delay past the September 30 merger close date [2]. Paramount and Skydance CEO Jason Ellison say the merger will boost competition, protect jobs, and create roughly 30 movies annually [1, 3].

The lawsuit marks a significant legal challenge to the $110 billion merger. The European Commission is set to decide by July 22, and Paramount expects the merger to close by September [3, 2].