Paramount Global's $110 Billion Warner Bros. Discovery Merger Faces Legal Storm

The proposed $110 billion acquisition of Warner Bros. Discovery Inc. by Paramount Global faces multiple legal challenges that threaten its September closing deadline. A coalition of 12 U.S. state attorneys general, led by California Attorney General Rob Bonta, filed an antitrust lawsuit and requested a temporary restraining order, arguing the deal would extinguish competition and raise consumer prices. Simultaneously, the Writers Guild of America filed a lawsuit claiming the merger would allow the new entity to suppress writers' wages and reduce job opportunities.

Additional litigation emerged in Delaware Chancery Court, where shareholders alleged that David and Larry Ellison struck an undisclosed side deal with President Donald Trump to secure regulatory approval. The suit claims the Ellisons promised to align CNN's coverage with the administration and provided millions in advertising and settlement payments. Paramount Global has denied these claims, stating it has no knowledge of such promises.

Despite approval from the U.S. Department of Justice, China, Canada, and Australia, the deal remains under review by the European Commission, with a decision expected by July 22. Paramount Global maintains the merger is essential to compete with dominant streaming platforms and asserts the transaction will expand opportunities for creators. Lead trial counsel Jeffrey Kessler stated the company is prepared to appeal rulings up to the Supreme Court to avoid a costly ticking fee that begins October 1.