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Twelve Blue States Sue to Block Paramount-Warner Bros. Discovery Merger After DOJ Clearance

Published
Score
26

Why it matters

Twelve states led by California Attorney General Rob Bonta filed an antitrust lawsuit Monday to block Paramount Skydance Corp.'s acquisition of Warner Bros. Discovery, challenging an $81–$111 billion transaction. The states argue the merger would eliminate competition, raise prices for TV bundles, reduce content output and quality, and harm movie theaters and basic cable distributors. The defendants are Paramount Skydance, backed by David Ellison and sovereign wealth funds from Saudi Arabia, Qatar, and Abu Dhabi, and Warner Bros. Discovery, which owns HBO, CNN, and other major media properties. Arizona, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon, and Washington joined California in the suit.

The federal government has already cleared the deal. The U.S. Department of Justice Antitrust Division closed its investigation on June 12, concluding the merger would not harm competition. The companies announced the transaction earlier in 2026, and Warner Bros. Discovery shareholders approved it in late April. The parties aim to close by September 2026 but face the states' request to enjoin the merger pending litigation. The European Commission's provisional review deadline expired July 14, adding international regulatory complexity to the domestic challenge.

Attorneys should monitor this case as a test of state-level antitrust authority in major media consolidation. The lawsuit signals willingness by state attorneys general to pursue independent challenges even after federal clearance, potentially creating a new litigation risk for large transactions. The outcome could reshape how media mergers proceed and whether state opposition can effectively block deals the DOJ has approved.

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