Paramount Skydance CEO David Ellison's $110 billion bid to acquire Warner Bros. Discovery advanced last week after receiving approval from the U.S. Department of Justice, with Paramount stating its intention to finalize the merger 'as soon as possible' [1]. However, the deal is now under intense scrutiny from state attorneys general, particularly California Attorney General Rob Bonta, who emphasized that 'the merger of Warner Bros and Paramount is not a done deal and remains under investigation by my office' [1]. New York Attorney General Letitia James' office is also probing the transaction, and other states are reportedly involved in similar investigations [1].
Legal experts note that state attorneys general have the authority to challenge mergers independently of federal regulators, with the most direct tool being an antitrust lawsuit seeking an injunction to block the transaction [1]. Spokespeople for Bonta and James declined to comment on the status of potential legal challenges [1].
The proposed merger would consolidate two historic film studios, two major streaming platforms, and a wide range of broadcast and cable assets under David Ellison, who is the son of Oracle co-founder Larry Ellison [1]. The deal would also unite CBS News and CNN, raising concerns about media consolidation and editorial independence, especially as Ellison seeks to overhaul key news operations [1].
Industry professionals have voiced strong opposition to the merger, warning it could reduce the number of buyers for film and television content, decrease job opportunities, and increase costs for consumers [1]. Over 5,500 actors, directors, producers, and screenwriters—including JJ Abrams, Bryan Cranston, Jane Fonda, Pedro Pascal, and Ben Stiller—signed an open letter supporting state AG scrutiny and potential legal action to block the deal [1]. Advocacy group Free Press has also spoken out against further media consolidation [1].
CONCLUSION
While the Paramount-Skydance and Warner Bros. Discovery merger has cleared a major federal hurdle, significant opposition remains at the state level, with California and New York attorneys general actively investigating and considering legal action. The outcome of these state-level challenges will be critical in determining whether the $110 billion deal proceeds, with substantial implications for competition, employment, and consumer costs in the entertainment industry.