California Attorney General Rob Bonta and 11 other state attorneys general filed suit Monday in the U.S. District Court for the Northern District of California, seeking to halt Paramount Skydance’s proposed acquisition of Warner Bros. Discovery on antitrust grounds. The Daily Planet’s home base, Minnesota, is among the states joining the challenge, alongside Arizona, Colorado, Connecticut, Massachusetts, Nevada, New Jersey, New Mexico, New York, Oregon and Washington.
The lawsuit lands at a pivotal moment for Warner Bros. Discovery (WBD), the corporate parent of DC Comics and the studio behind Superman’s modern film and television output. A merger with Paramount would consolidate ownership of one of the entertainment industry’s most recognizable franchises under a single media giant, adding a new layer of scrutiny to a deal already facing pushback from theater owners, labor groups and rival streaming platforms.
The coalition argues the combination would sharply reduce competition across film distribution and cable television. According to the lawsuit, a combined Paramount-Warner Bros. Discovery would control 27% of the U.S. film distribution market, 30% of blockbuster film distribution and 27% of the basic cable channel market.
“America has no kings in government or our economy,” Bonta said in a statement announcing the suit.
Paramount has said the merger is lawful and would create a stronger competitor to dominant streaming and technology platforms, according to CNN, which is owned by WBD. The company has also noted that regulators in multiple countries, along with the U.S. Department of Justice, have already cleared the deal. The Justice Department’s Antitrust Division signed off on the merger in mid-June.
The states’ coalition has asked Paramount and WBD to hold off closing the deal until litigation concludes, warning that it will seek a temporary restraining order if the companies refuse.
Monday’s suit is not the only legal hurdle facing the deal. Paramount subscribers filed a separate lawsuit in April alleging the merger would reduce competition across streaming, news and theatrical distribution, according to the Hollywood Reporter. If completed, the combined company would become the third-largest streaming platform behind Netflix and Disney and control roughly a quarter of theatrical distribution.
Paramount chief executive David Ellison has pledged to release at least 30 films theatrically each year with a minimum 45-day theatrical window in an effort to ease industry concerns, the Hollywood Reporter reported. Paramount executives have pointed to competition from technology companies, including Netflix, Amazon and Google as justification for the consolidation.
The merger’s path has already been unconventional. WBD’s board initially struck an agreement with Netflix valued at nearly $83 billion for much of the company, excluding CNN and other cable properties. Paramount then raised its offer for the entire company, prompting Netflix to withdraw.
Financial pressure adds urgency to the timeline. Paramount has committed to paying roughly $650 million per quarter to Warner Bros. Discovery shareholders if the deal doesn’t close by October. The company has said prolonged delays could force it to renegotiate financing or jeopardize the transaction entirely.
A ruling on the states’ claims will likely take months. Theater owners have opposed the merger over fears it would reduce the volume of films reaching screens, while actors and writers have raised concerns about job losses.
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