Twelve Democratic attorneys general allege the deal would reduce competition in film distribution and cable TV, raising prices for consumers.
Twelve state attorneys general filed a lawsuit to block Paramount Skydance Corporation’s $110 billion acquisition of Warner Bros. Discovery, arguing the merger would harm competition in film and cable markets. The suit claims the combined entity would control nearly 60 percent of wide-release films and basic cable programming in the U.S., leading to higher prices and less content for consumers.
The complaint, led by California Attorney General Rob Bonta, alleges violations of the Clayton Act, which prohibits deals that substantially lessen competition. It targets three key markets: wide-release film distribution, blockbuster film distribution, and basic cable channel licensing. The states argue the merger would create a dominant player in an already concentrated industry.
The lawsuit was filed in the U.S. District Court for the Northern District of California. No immediate market reaction was reported, but the legal challenge could delay or derail the deal.