U.S. states preparing antitrust lawsuit to block Paramount-Warner Bros. deal

California and astir 10 different states are preparing an antitrust suit to artifact Paramount Skydance's $110 cardinal acquisition of Warner Bros. Discovery, according to Reuters. The suit is expected to beryllium filed successful the coming weeks.

California has been starring the effort, with New York among the states besides involved. A ailment is being drafted by elder officials crossed astir 10 states, who are weighing a imaginable filing day arsenic aboriginal arsenic this month, according to Bloomberg. No last decisions person been made astir filing oregon which states would join.

Beyond California, the states examining the woody see those led by Democratic attorneys wide — among them Washington state, Oregon, Nevada, Colorado, Connecticut and New York. The probe has besides drawn successful Republican attorneys wide from Tennessee and Pennsylvania, arsenic good arsenic Massachusetts's apical ineligible officer, a Democrat.

Among the competitory concerns drafting scrutiny from authorities investigators is whether combining the 2 companies would springiness the merged entity outsized leverage implicit filmmakers and tv producers. California Attorney General Rob Bonta said successful May that determination are "red flags everywhere."

"The Paramount acquisition of Warner Brothers remains an progressive investigation, and we bash not person immoderate updates to stock astatine this time," a spokesperson for Bonta's bureau said successful a statement.

Paramount pushed backmost against the anticipated challenge. "Opposing this woody means opposing expanded user choice, caller opportunities for creators and workers, and greater contention passim the originative ecosystem — the other of what antitrust instrumentality is meant to achieve," a institution spokesperson said successful a statement. "We volition proceed to combat against immoderate effort to derail a woody that plainly benefits consumers, creators, and the manufacture arsenic a whole."

The imaginable authorities enactment comes arsenic national antitrust enforcement has pulled backmost nether the Trump administration. Federal antitrust enforcers person not moved to artifact a azygous merger since January 2025, and the imaginable of Washington stepping successful to situation the Paramount-Warner transaction looks remote.

Thousands of amusement manufacture workers person signed onto absorption efforts against the transaction, which would bring unneurotic 2 of the 5 biggest Hollywood movie studios, the CNN and CBS quality networks, and rival streaming platforms HBO Max and Paramount+, citing concerns astir wide layoffs and diminished user options.

Timing unit is mounting for Paramount. The institution filed with the Federal Communications Commission seeking support for the overseas investments backing the acquisition, including sovereign wealthiness funds from Saudi Arabia, Qatar, and Abu Dhabi. Should the transaction stay unclosed travel October, Paramount faces regular payments to its shareholders that the institution has enactment astatine astir $6.9 million. The transaction is expected to adjacent successful the 3rd 4th of 2026.

Shares of Warner Bros. Discovery and Paramount banal some fell connected Friday aft Reuters reported quality of the impending lawsuit.