California joined 11 other states in a federal lawsuit Monday seeking to block Paramount Skydance’s $110 billion merger with Warner Bros. Discovery, saying the deal would reduce competition and “harm” consumers.
The states filed the lawsuit in Northern California federal court on July 13, arguing the deal will combine two of Hollywood’s five major film studios, giving the combined company control of 30% of feature film distribution and 27% of the basic cable and satellite television market.
States Warn of Fallout
California Attorney General Rob Bonta warned the merger would lead to widespread fallout in the entertainment industry.
“Today, I am leading a coalition of states in challenging the proposed merger of Warner Bros. and Paramount and asking the court to block the deal,” Bonta said.
“The unlawful merger of these two entertainment behemoths would lead to higher prices, lower quality, and less content for film and television, harming movie theaters, basic cable distributors, and ultimately, audiences on every sofa and movie theater seat in the U.S.,” he continued.
The other states in the antitrust lawsuit are Arizona, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon, and Washington.
New York Attorney General Letitia James issued a statement, saying the merger would create “a massive company with unprecedented power and influence over news and entertainment across the globe.”
Related: Hollywood Stars Unite Against Paramount–Warner Bros. Merger
Paramount Response
Paramount Skydance pushed back on the claims, arguing the merger will allow the combined company to better compete with streaming giants like Netflix.
“The lawsuit filed by the state attorneys general, in the most generous light, reflects a fundamentally flawed application of the antitrust laws and is wrong on both the facts and the law,” Paramount Skydance said in a statement Monday.
“We will vigorously defend the transaction and demonstrate that this challenge is inconsistent with sound competition policy and the competitive realities of the media marketplace,” the company added. “Delaying this transaction will only harm entertainment workers who have already suffered over recent years as technology has disrupted their livelihood and cost California tens of thousands of entertainment jobs.”
If approved, the merger would put the combined company under the leadership of David Ellison, son of Trump ally and billionaire Oracle founder Larry Ellison.
The deal has drawn scrutiny because of its perceived political backing and its potential to eliminate thousands of jobs.
David Ellison purchased Paramount Global in August 2025. After the deal closed, the merged company announced plans to cut roughly 2,000 jobs, NBC News reported.
There have also been dramatic changes at CBS News, 60 Minutes, and the BET+ streaming service was folded into Paramount+.
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