Paramount's $110 bn Warner Bros. Discovery acquisition faces US lawsuit
California and 11 other states in the US have filed suit seeking preliminary injunction
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Published: Jul 14, 2026 11:40 AM | 1 min read
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- California and 11 other states have filed an antitrust lawsuit to block Paramount's $110 billion acquisition of Warner Bros. Discovery, citing concerns over excessive market power.
- The states are seeking a preliminary injunction in federal court to halt the merger while the case is ongoing, arguing it would reduce competition in the film and television industries.
- The lawsuit claims the merger could lead to higher consumer prices and diminished wage competition within the media sector.
- Paramount has denied the allegations, asserting that the lawsuit misrepresents the competitive landscape and antitrust law.
California and 11 other US states have filed an antitrust lawsuit seeking to block Paramount's proposed $110 billion acquisition of Warner Bros. Discovery, arguing that the merger would create an oversized media company with excessive market power.
The states have also sought a preliminary injunction in a federal court in Oakland, California, to halt the transaction while the antitrust case proceeds.
The lawsuit poses a significant challenge to Paramount CEO David Ellison's plan to combine the two media companies in a bid to strengthen their position against streaming giants such as Netflix and Disney.
According to the complaint, the merger would reduce competition across the film and television industries, giving the combined company greater leverage over movie theatres, television distributors and workers.
The states, which include New York, Arizona and Minnesota, alleged that the deal could lead to higher prices for consumers and weaken wage competition in the media sector.
Paramount has rejected the allegations, saying the lawsuit mischaracterises both the competitive landscape of the entertainment industry and established antitrust law.
The company also said the challenge is based on an inaccurate assessment of market competition.
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