California and 11 other Democratic-led states filed a federal antitrust lawsuit on July 13 to block Paramount Skydance's $110 billion acquisition of Warner Bros. Discovery, defying the Department of Justice, which cleared the deal just last month.
The states argue the merger violates the Clayton Act by sharply reducing competition in three markets: wide-release theatrical distribution, top-grossing theatrical releases, and basic cable licensing. Combined, Paramount-WBD would control up to 75% of wide-release theatrical distribution and roughly 27% of basic cable licensing. California Attorney General Rob Bonta called it the largest merger in Hollywood history, warning it would mean higher prices, lower quality, and less content for audiences.
Paramount called the lawsuit wrong on both the facts and the law, saying the merger strengthens competition against Netflix and other streaming and tech rivals, and vowed to fight it in court. The states are seeking a court order to block the transaction from closing.