California leads 12-state lawsuit against Paramount-Warner Bros. Discovery deal

A coalition of 12 U.S. states has filed a lawsuit seeking to block Paramount’s proposed $110 billion acquisition of Warner Bros. Discovery, arguing that the deal would significantly reduce competition in the entertainment industry and ultimately harm consumers.

The lawsuit, led by California Attorney General Rob Bonta, claims the merger would give the combined company excessive control over the film and cable television markets.

Attorneys general from Arizona, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon and Washington have joined California in the legal challenge.

According to the complaint, the merger would allow the combined company to control 27% of the U.S. basic cable television licensing market and 75% of wide-release theatrical film distribution, raising concerns over market concentration.

State officials argue that the reduced competition could result in higher prices, fewer viewing choices and lower-quality content for consumers while placing additional pressure on movie theaters and cable television distributors.

“With this lawsuit, California and our sister states are fighting for free and fair markets, not rigged markets,” Bonta said in a statement. He warned that the merger could reduce investment in film and television content while increasing costs for audiences nationwide.

The states have asked Paramount to postpone finalizing the acquisition until the legal proceedings conclude. If the company proceeds with the transaction, the coalition said it will seek a court order to halt the deal.

The lawsuit comes as reports suggest Paramount CEO David Ellison is considering relocating the company’s headquarters from California amid growing tensions surrounding the merger. Ellison, the son of Oracle co-founder Larry Ellison, has previously defended the deal, arguing it would strengthen the studio’s ability to produce more films rather than reduce output.

Paramount has not publicly commented on the latest lawsuit but has previously dismissed potential legal challenges as politically motivated.

The proposed merger has already cleared a key review by the U.S. Department of Justice, but it continues to face mounting opposition from industry figures and regulators.

Earlier this year, thousands of actors, directors and producers – including Robert De Niro, Ted Danson and J.J. Abrams – signed an open letter urging regulators to reject the transaction, arguing it could threaten the independence and diversity of the entertainment industry.