12 states sue to block $110 billion Paramount-Skydance deal

A coalition of 12 state attorneys general, led by California's Rob Bonta, filed a federal antitrust lawsuit on Monday, July 13, 2026, seeking to block the proposed $110 billion acquisition of Warner Bros. Discovery by Paramount Skydance. The lawsuit, filed in the U.S. District Court for the Northern District of California, represents the most significant remaining obstacle to a merger that had already received clearance from the U.S. Department of Justice last month.

The states allege the combination of two of Hollywood's largest studios would violate the Clayton Act by substantially reducing competition across multiple markets. According to the complaint, the merged entity would control approximately 27% of the market for wide-release theatrical films, over 30% of anticipated blockbuster releases, and roughly 27% of the basic cable programming market. The attorneys general argue this consolidation would lead to higher prices, lower quality, and less content for consumers, harming movie theaters, cable distributors, and audiences.

In a statement, Bonta said the merger would stifle competition and creativity. He argued that consolidation leads to fewer opportunities for diverse...