U.S. states are poised to sue this week to block Paramount's $110 billion takeover of Warner Bros. Discovery, citing concerns the merger would harm competition by combining two of Hollywood's major studios.California Attorney General Rob Bonta is leading a multi-state investigation into whether the deal violates U.S. antitrust laws.
The proposed merger, which would unite Warner Bros. (home of "Harry Potter" and "Superman" films) with Paramount Pictures, has drawn sharp opposition from actors, writers, theater owners and others in Hollywood. Critics fear widespread job losses, fewer films released, reduced consumer choice and weakened competition in the industry.
Paramount has defended the combination as necessary to compete for audiences, talent and investment in a rapidly changing media landscape. CEO David Ellison has told theater owners the merged studios plan to release about 30 movies per year.
The states' move comes amid heightened scrutiny of large mergers at the state level, as federal antitrust enforcement has eased. Reuters reported in early June that California, New York and other states were preparing legal action. Analysts have noted Paramount's political connections, including ties between Ellison's father, Oracle co-founder Larry Ellison, and President Donald Trump, may have smoothed federal regulatory approval.
While not all challenges succeed, coordinated state lawsuits can delay mergers for months through court orders that pause the deal or require companies to hold assets separately. Such delays could push back Paramount's planned $6 billion in cost savings from the merger. The timeline for filing remains subject to change as states coordinate.