California and 11 other states allege the merger would dominate film and TV distribution, driving up prices for consumers.
A coalition of 12 states filed a lawsuit to halt Paramount’s $110 billion acquisition of Warner Bros Discovery, arguing the deal would create an outsized media entity with pricing power over theaters and television distributors. The states claim the combined company would control 27% of U.S. film distribution and 30% of blockbuster releases, leading to higher costs for consumers and workers.
The lawsuit follows federal antitrust clearance last month, which critics attributed to Paramount’s political ties. Paramount disputes the claims, calling the suit a misrepresentation of competition in the entertainment sector. The deal aims to position Paramount as a stronger rival to Netflix and Disney.
No immediate market reaction was reported, but the legal challenge could delay or derail the merger. The states’ attorneys general, all Democrats, emphasized the deal’s potential to concentrate market power in a single entity.