12 US States Oppose $110 Billion Paramount and Warner Bros. Deal

Attorneys general from 12 US states have filed a lawsuit to block the merger of Paramount Skydance and Warner Bros. Discovery (WBD). Concerns are growing that this massive $110 billion deal could lead to a monopoly in the media market and cause price hikes for consumers. This is reported by Techcrunch.com reports.

A coalition led by California Attorney General Rob Bonta argues that the deal violates the Clayton Antitrust Act. According to the lawsuit, the merger of the two major studios would seriously harm the interests of movie theaters, cable TV distributors, and ordinary viewers. Specifically, control over wide-release films and the most profitable blockbusters could be concentrated in one hand.

The threat of a new media giant

If this deal goes through, streaming platforms Paramount+ and HBO Max, as well as influential TV channels like CBS, MTV, CNN, and HBO, will be united under one system. This means one company would control 27% of the US film distribution market and 30% of the market for the highest-grossing blockbusters. According to TechCrunch, such consolidation will lead not only to price increases but also to a decrease in creative diversity.

According to Attorney General Rob Bonta, such market consolidation limits the opportunity for important stories to reach the world. "No one is above the law. California and other states are fighting for a fair market; we don't need 'kings' in the economy," he emphasized in his statement.

Paramount management has rejected these concerns, stating that the merged studio plans to produce at least 30 films per year. Paramount CEO David Ellison expressed confidence in May that the deal would be finalized by September. Additionally, Warner Bros. Discovery shareholders approved the agreement in April.

Industry reaction

The project is being criticized not only by law enforcement but also by Hollywood creators—directors and actors. They fear that excessive centralization of the media industry could stifle competition and narrow the space for new ideas. Nevertheless, the US Department of Justice previously concluded that the transaction would not harm consumers.

Currently, the following states have joined the lawsuit alongside California:

• Arizona and Colorado;
• Connecticut and Massachusetts;
• Minnesota and Nevada;
• New Jersey and New Mexico;
• New York, Oregon, and Washington.

This legal process is expected to set an important precedent for the global media market. If the court rules in favor of the states, it could lead to the cancellation or fundamental restructuring of one of the largest media deals in recent years. For now, representatives for Paramount and WBD are refraining from official comments on the lawsuit.