12 US states file antitrust lawsuit to block Paramount's acquisition of Warner Bros. Discovery

A coalition of 12 U.S. states, led by California, has launched an antitrust lawsuit aiming to halt the proposed $110 billion merger between Paramount Global and Skydance Media, arguing the consolidation poses a significant threat to competition within the Hollywood landscape.

“

higher prices, lower quality, and less content.

The legal challenge, filed in federal court in Northern California, represents a major regulatory hurdle for the deal, which had previously received approval from the U.S. Department of Justice without conditions. California Attorney General Rob Bonta asserted that the merger of two of Hollywood's five major film distributors would result in consumers facing "higher prices, lower quality, and less content."

"In our country, no one is above the law," Bonta declared. "California is fighting alongside our like-minded states for a free and fair market, not a manipulated one. America has no kings, neither in government nor in the economy."

“

In our country, no one is above the law.

The states contend that the proposed transaction between Paramount Skydance and Warner Bros. Discovery violates the Clayton Antitrust Act. This federal law prohibits mergers that could substantially reduce market competition. The states joining California in the lawsuit include Arizona, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon, and Washington.

“

California is fighting alongside our like-minded states for a free and fair market, not a manipulated one.

According to the lawsuit's filings, the combined entity would control approximately 27% of U.S. theatrical film distribution and about 27% of basic cable television channel licensing. This concentration of power is the core concern for the states, who believe it will stifle innovation and limit consumer choice in the entertainment industry.

“

America has no kings, neither in government nor in the economy.