On July 13, 2026, a coalition of 12 state attorneys general, led by California Attorney General Rob Bonta, filed a lawsuit seeking to block the proposed acquisition of Warner Bros. Discovery (WBD) by Paramount Skydance on antitrust grounds [1]. This legal action comes despite the U.S. Department of Justice (DOJ) having already cleared the merger in mid-June, stating that their investigation found the transaction was not likely to harm competition or American consumers [1]. The merger has also received approval from WBD shareholders in April and from several global jurisdictions, though the European Union is still reviewing the deal, with a provisional deadline set for July 22. Paramount has submitted concessions to the European Commission to address regulatory concerns [1].
The proposed merger would combine Paramount and Warner Bros., two major film studios, as well as their streaming platforms, Paramount+ and HBO Max, which Paramount CEO David Ellison has said would be unified post-transaction [1]. The deal would also create the largest portfolio of TV networks in the U.S., merging Paramount's CBS, MTV, and BET with WBD's CNN and TNT, among others [1]. Ellison has committed to releasing 30 movies per year and to protecting jobs, addressing concerns from Hollywood about potential job losses and fewer film releases [1].
The transaction has faced scrutiny from lawmakers in both the U.S. and Europe, particularly regarding foreign funding in Paramount's offer [1]. The European Commission is still evaluating the deal, and its decision is pending as of the latest update [1].
The merger process has been complex, with Paramount initially making a hostile takeover bid for WBD after WBD had agreed to sell its film studio and streaming assets to Netflix. Netflix subsequently dropped its deal, and Paramount secured an agreement to acquire all of WBD for $31 per share [1].
Market implications are significant, as the lawsuit introduces new uncertainty into a deal that had appeared close to completion, with the potential to reshape the U.S. media landscape by consolidating major studios and streaming services [1].
CONCLUSION
The Paramount-Skydance and Warner Bros. Discovery merger, previously cleared by the DOJ and several global regulators, now faces a major legal challenge from 12 U.S. states. The outcome of this lawsuit and the ongoing EU review will be critical in determining whether the deal proceeds, with substantial implications for the media and entertainment industry.