US states sue to block Paramounts 110 billion Warner Bros Discovery takeover over antitrust concerns
Twelve US states, led by California, have filed a lawsuit to block Paramount's $110 billion takeover of Warner Bros Discovery. The lawsuit was filed in federal court in northern California on Monday, July 13, 2026.
California Attorney General Rob Bonta, who is leading the coalition, said the combination of two of Hollywood's major film distributors would lead to "higher prices, lower quality, and less content" for audiences. "In this country, no one is above the law," Bonta said. "California and our sister states are fighting for free and fair markets, not rigged markets."
The states allege that the deal violates the Clayton Act, the federal law that bars mergers likely to substantially reduce competition. Joining California in the suit are Arizona, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon, and Washington.
Paramount has responded by calling the lawsuit "fundamentally flawed." The company argues that the merger would create a stronger rival to streaming platforms like Netflix, Amazon, and Apple. Paramount has also pledged to release at least 30 films a year for full theatrical runs with a minimum 45-day window.
The lawsuit comes amid reports that regulators in the United Kingdom might also intervene in the deal. The states have asked Paramount to delay closing the deal until legal proceedings conclude. If Paramount does not comply, the states will seek a court order requiring it to do so.
The merger, which would combine a sprawling roster of assets including CNN, Warner Bros Pictures, and the HBO Max streaming service, has become politically charged. President Donald Trump has publicly supported the deal, citing his friendship with Paramount CEO David Ellison, whose father is Larry Ellison, the co-founder of Oracle.
The lawsuit represents a direct challenge to the Trump administration's Justice Department, which approved the merger without conditions or divestitures after an eight-month review. The states argue that the merger would control 27 percent of the nation’s basic cable TV licensing and 75 percent of wide-release theatrical film distribution, leading to higher prices and reduced investment in content.
Paramount has noted that competition regulators in 24 jurisdictions have already cleared the transaction or allowed their review periods to expire.
The lawsuit was filed on Monday, July 13, 2026, and the states are seeking a court order to block the merger until the legal proceedings conclude.
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