Paramount Fights Legal Battles Over $110 Billion Warner Bros. Acquisition

On June 3, 2026, Paramount filed a motion to dismiss a federal antitrust lawsuit in the U.S. District Court for the Northern District of California. Five streaming subscribers filed the suit in April, alleging that the $110 billion acquisition of Warner Bros. Discovery would increase prices and compromise the editorial independence of CBS News. Paramount characterized the suit as a politically motivated attempt to derail a deal necessary to compete with tech giants like Netflix and Amazon.

While the U.S. Department of Justice and Federal Trade Commission are unlikely to challenge the merger, a coalition of approximately 10 U.S. states, led by California Attorney General Rob Bonta, is drafting a separate antitrust lawsuit. This group, which includes New York and Washington, is investigating whether the deal would reduce bargaining power for creators and lead to job losses in Hollywood. Concurrent protests, including the "Main Street vs. The Merger" tour in Los Angeles, have been organized by groups like the Writers Guild of America to highlight industry vulnerability.

Additional opposition comes from Senator Elizabeth Warren, who cited national security risks and privacy concerns regarding the $24 billion investment from Saudi, Qatari, and Abu Dhabi sovereign wealth funds. Paramount CEO David Ellison has attempted to soothe concerns by pledging to release 30 films annually in theaters. The company aims to close the deal by September 30 to avoid daily $6.9 million fees to shareholders. The merger also faces regulatory reviews from the United Kingdom and the European Union, with an EU deadline set for July 7.