Twelve Democratic state attorneys general filed a lawsuit on Monday seeking to halt the $111 billion merger between Paramount Skydance and Warner Bros Discovery, arguing the combination violates federal antitrust law and threatens competition in film distribution, cable television and streaming. A federal judge will hear arguments on Friday over whether to pause the deal while the case proceeds, a decision that will determine if the merger can move toward closing despite the Department of Justice having approved it in June.
California Attorney General Rob Bonta, who leads the coalition, said the complaint rests on data points that courts have traditionally accepted as grounds for finding a merger presumptively unlawful under the Clayton Act. Bonta described the filing as clean, clear and concise, and said he is optimistic about the states’ chances in court. The suit does not name a specific monetary remedy but asks the court to block the transaction outright.
The coalition includes the top prosecutors from California, Washington, New Jersey and nine other states. No Republican attorneys general joined the effort, a fact Bonta called disappointing and suggested might reflect pressure from the head of the Republican party, Donald Trump. Bonta noted he recently helped form a bipartisan coalition that succeeded in temporarily blocking the Nexstar-Tegna television station merger, underscoring that antitrust enforcement has historically crossed party lines.
Washington Attorney General Nick Brown said his office was surprised by the volume of constituent outreach expressing alarm over the deal. Residents warned that combining two major studios would reduce competition among film distributors and streaming services, potentially raising prices for consumers. New Jersey Attorney General Jennifer Davenport echoed that concern, saying the merger would mean higher costs and fewer content choices for residents in a state already grappling with rising living expenses.
New Jersey’s stake is amplified by a recent wave of studio investment fueled by generous tax credits. Netflix plans to invest $1 billion in a new production facility at Fort Monmouth, Lionsgate is building a dedicated facility in Newark, and Paramount is slated to serve as anchor tenant for 1888 Studios, a 58-acre complex. Davenport argued that reduced competition would harm not only consumers but also the local industry, including artists, storytellers and the next generation of workers.
The lawsuit does not directly challenge the combination of CBS News and CNN, which are owned by Paramount Skydance and Warner Bros Discovery respectively. Brown, however, said consolidation in news media raises red flags because fewer owners controlling more outlets threatens the diversity of voices explaining government and national events. Bonta shared that concern, warning the merger could lead to a reduction in journalism and other content.
Friday’s hearing will test whether a judge views the states’ data as sufficient to justify a preliminary injunction against a deal the Justice Department has already cleared. If the court denies the pause, the merger could advance toward completion while the states’ case proceeds on the merits. If the judge grants it, the transaction faces an indefinite delay and the parties must decide whether to appeal, renegotiate or abandon the combination.