Paramount Pressure Intensifies

A mounting coalition of critics is intensifying pressure on the proposed $111 billion merger between Paramount Skydance and Warner Bros. Discovery (WBD), with antitrust, job loss, and national security concerns fueling opposition just weeks after the deal was signed in late February 2026.

A group of 14 lawmakers, led by Sens. Elizabeth Warren (D-Mass.) and Richard Blumenthal (D-Conn.), this week sent a joint letter to the Department of Justice (DOJ) and Treasury Department urging rigorous scrutiny of the transaction. The senators highlighted substantial antitrust risks from combining major studios, streaming platforms (Paramount+ and Max), and news outlets (CBS News and CNN), potentially reducing competition in theatrical distribution, premium streaming, and content licensing.

They also raised national security alarms over foreign investments—reportedly billions from Middle Eastern sovereign wealth funds backing Paramount's bid—questioning why the Committee on Foreign Investment in the United States (CFIUS) has not initiated a full review despite prior calls.

The International Brotherhood of Teamsters escalated the fight by submitting a detailed report to the DOJ's Antitrust Division, warning that the merger threatens nearly 15,000 union jobs in the motion picture industry alone. Without enforceable worker protections, increased domestic production commitments, or safeguards against offshoring and layoffs, the union urged the government to block the deal outright. Teamsters leaders emphasized that past media consolidations have led to job losses, reduced production in American communities, and workers bearing the costs.

Separately, California Attorney General Rob Bonta accused the federal government under President Trump of having "abdicated" its responsibilities to hold big corporations accountable on antitrust enforcement. Bonta announced his office has an open investigation into the merger and intends to conduct a vigorous review, positioning California as a key state-level check amid perceived federal inaction.

The deal, which Paramount Skydance clinched after outbidding Netflix in a heated contest, remains pending and is expected to close in Q3 2026 subject to regulatory clearances, shareholder approval, and international reviews (including in the EU and UK). Paramount CEO David Ellison has expressed confidence in approval and pledged no pullback on production.