California Attorney General Demands Structural Remedies in Paramount Merger Lawsuit

California Attorney General Rob Bonta stated that a coalition of 12 states will require robust structural remedies to reach a settlement in their lawsuit to block the acquisition of Warner Bros. Discovery by Paramount Skydance. The lawsuit, filed in July, alleges the merger would create an illegal market concentration by controlling nearly one-third of basic cable TV programming and films.

Bonta expressed a preference for resolving the case in the boardroom rather than the courtroom but criticized Paramount for avoiding the specific antitrust allegations in the complaint. He dismissed arguments regarding market trends, stating that whether the market is shrinking or growing is irrelevant to the case.

Paramount has dismissed the legal challenge as a misrepresentation of competition in the entertainment industry and intends to defend the transaction. Lead counsel Jeffrey Kessler indicated the company is prepared to take the matter to the Supreme Court. Due to the litigation, the companies have delayed the closing of the deal to as late as June 2027, with a trial scheduled for March.