Entertainment

California-led states sue to block Paramount’s $110 billion Warner Bros Discovery deal

July 14, 2026 5:45 pm

[Source: Reuters]

California and 11 states sued to block Paramount’s (PSKY.O), opens new tab $110 billion acquisition of Warner Bros.

Discovery (WBD.O), opens new tab, alleging the deal would create a media ​behemoth with the power to raise prices in film and television.

The lawsuit, opens new tabfiled in Oakland federal court, threatens to derail Paramount CEO David Ellison’s bid to transform his company into ‌a major rival of Netflix (NFLX.O), opens new tab and Disney (DIS.N), opens new tab.

States including New York, Arizona and Minnesota argued the deal would harm theaters and television distributors, raising prices for consumers and making wages less competitive for workers.

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“After this merger, for every dollar generated by wide-release theatrical films and basic cable channels in this country, the combined company will pocket more than a quarter,” the states said in the lawsuit, adding, “This merger, in short, would create a media behemoth.”

Paramount said the lawsuit distorts settled ​antitrust law and is based on a misrepresentation of competition in the entertainment industry.

Critics of the deal have said Paramount’s political connections smoothed the path ​to clearance last month by the U.S. Department of Justice.

Paramount CEO David Ellison’s father, billionaire Oracle (ORCL.N), opens new tab co-founder Larry Ellison, has cultivated ties with ⁠Republican President Donald Trump.

Meanwhile, all of the state attorneys general involved in the lawsuit are Democrats. Oregon Attorney General Dan Rayfield said, “despite the federal regulators rubber-stamping this bad deal, we’re stepping up to ​protect families, small businesses, and Oregon’s film industry.”

For some Democrats, antitrust has also become a way to combat the Trump administration when they think it is allowing corporations to leverage their influence.

Colorado, Connecticut, ​Massachusetts, Nevada, New Jersey, New Mexico, and Washington also joined the lawsuit.

“Trump is pro-rigged economy,” Bonta said at a press conference on Monday, citing major antitrust cases the DOJ has resolved, including a case against concert company Live Nation (LYV.N), opens new tab. The White House did not immediately respond to a request for comment.

Antitrust enforcement has also been used to combat the issues vexing voters the most in recent years, with U.S. political leaders leveraging competition law to harness frustration ​with the soaring cost of living and to address widespread negative sentiment towards big business.