12 States and WGA Sue to Block Paramount-Warner Merger

A coalition of 12 U.S. states, led by California Attorney General Rob Bonta, and the Writers Guild of America (WGA) filed separate lawsuits in July 2026 to block Paramount Skydance's approximately $110 billion acquisition of Warner Bros. Discovery. The plaintiffs argue the merger violates the Clayton Act by creating a media behemoth that would control nearly one-third of the blockbuster and basic cable markets, leading to higher consumer prices, reduced content variety, and suppressed wages for creative workers.

The legal challenges follow a June 12 unconditional approval of the deal by the United States Department of Justice. Several state attorneys general alleged this federal clearance was a rubber-stamping of the deal influenced by political ties between the Donald Trump administration and Paramount CEO David Ellison. In response, Paramount has vowed to vigorously defend the transaction, claiming it is essential to compete with dominant technology platforms like Netflix and Amazon.

To mitigate opposition, David Ellison pledged that the combined entity would release 30 films annually and maintain a 45-day exclusive theatrical window. However, tensions escalated as Ellison reportedly considered relocating corporate headquarters and $30 billion in annual spending out of California, having already leased studio space in Bayonne, New Jersey. Paramount aims to close the deal by September 30, 2026; failure to do so would trigger a ticking fee of approximately $650 million per quarter payable to Warner Bros. Discovery shareholders.