US state attorneys general sue to block Paramount-Skydance merger

A coalition of US state attorneys general has filed a lawsuit aiming to block the $110 billion merger between Paramount Skydance and Warner Bros Discovery. The group, led by California Attorney General Rob Bonta, argues the consolidation would stifle competition, resulting in higher prices, diminished quality, and less content for consumers.

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Today, I am leading a coalition of states in challenging the proposed merger of Warner Bros and Paramount and asking the court to block the deal.

Bonta stated, "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." The lawsuit, filed in the U.S. District Court for the Northern District of California, asks a judge to halt the deal until the legal process concludes.

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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.

This legal challenge comes weeks after the U.S. Department of Justice approved the merger, removing a significant hurdle. While numerous countries have also given their consent, regulatory approval is still pending in the UK and Europe. The UK's culture secretary has indicated a potential intervention, requesting further investigation into the deal.

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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.

Paramount Skydance and David Ellison, whose family investment firm is behind Skydance, maintain that the merger will foster competition and preserve the Hollywood landscape. They argue it will create a stronger company better equipped to compete against dominant technology platforms in an increasingly competitive industry. However, concerns have been raised regarding the close ties between the Ellison family, particularly Oracle billionaire Larry Ellison, and members of the Trump administration, prompting questions about the fairness of the regulatory process.

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This deal is pro-competitive, resulting in a stronger company better positioned to compete against dominant technology platforms in an industry increasingly defined by intense competition for audiences, talent, technology and investment.