12 state AGs are suing Paramount Skydance in an attempt to block its Warner Bros. Discovery deal
3 minute readPublished: Monday, July 13, 2026 at 4:06 pm
State Attorneys General Sue to Block Paramount-Skydance Warner Bros. Discovery Deal
A coalition of twelve state attorneys general has filed a lawsuit aiming to prevent Paramount Global from acquiring Warner Bros. Discovery. The legal challenge, spearheaded by California, New York, and New Jersey, alleges that the proposed merger is anticompetitive and would ultimately harm consumers.
The attorneys general argue that combining these two major entertainment entities would lead to increased prices, diminished content quality, and a reduction in available programming for audiences. They contend that such a consolidation would negatively impact movie theaters, cable distributors, and viewers across the nation. This legal action was anticipated, with California Attorney General Rob Bonta having previously indicated his office would scrutinize any proposal to acquire Warner Bros. Discovery.
Paramount has been eager to finalize the acquisition, reportedly agreeing to pay Warner Bros. Discovery shareholders approximately $7 million daily for each day the deal remains unclosed beyond September 30. A successful acquisition would significantly bolster Paramount's standing in Hollywood, granting it control over iconic assets such as Warner Bros. Studio, HBO, HBO Max, and news network CNN. Paramount already possesses a substantial portfolio, including Paramount Pictures, streaming services Paramount+ and Pluto TV, the CBS broadcast network, and cable channels like MTV.
The deal had previously received approval from the Department of Justice under the Trump administration in mid-June, which concluded that the transaction was unlikely to harm competition or consumers in the streaming, pay TV, or film production and distribution sectors. However, European regulators are currently reviewing the proposed acquisition and have already obtained concessions from Paramount, including its withdrawal from the United International Pictures joint venture with Comcast's Universal Pictures. The European Commission is expected to deliver its decision on the revised proposal by July 22.
The proposed merger has also drawn criticism from prominent figures in the entertainment industry. Actors such as Ben Stiller and Mark Ruffalo have publicly voiced their opposition, stating that the deal would further concentrate an already consolidated media landscape. They warned of reduced opportunities for creators, job losses within the production sector, increased costs, and diminished choices for audiences globally.
Meanwhile, some Warner Bros. Discovery shareholders are reportedly growing impatient. The company's stock price, which fluctuates based on the perceived likelihood of Paramount completing the deal at $31 per share, has seen a decline of approximately 8% since late February.
BNN's Perspective:
The lawsuit filed by twelve state attorneys general represents a significant hurdle for the proposed Paramount-Skydance acquisition of Warner Bros. Discovery. While the Department of Justice previously found no competitive harm, the states' concerns about consumer impact, pricing, and content diversity warrant careful consideration. The ongoing review by European regulators and the vocal opposition from industry figures highlight the complex landscape this deal faces. Finding a balance that fosters innovation and competition while ensuring consumer benefits remains a critical challenge for the future of media consolidation.
Tags: Paramount, Skydance, Warner Bros. Discovery, WBD, lawsuit, attorneys general, anticompetitive, merger, consumers, media, entertainment, Hollywood, HBO, CNN, streaming, regulators, European Commission, Ben Stiller, Mark Ruffalo, stock price