Twelve U.S. states have filed a lawsuit to block Paramount Skydance's $110 billion acquisition of Warner Bros. Discovery, alleging the merger violates antitrust laws and would harm economic competition in the entertainment and media industries.

The lawsuit, filed on Monday, July 15th, 2026, was led by California Attorney General Rob Bonta and joined by attorneys general from Arizona, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon, and Washington. The filing claims the merger would extinguish competition between Paramount and Warner Bros., inflicting substantial harm on movie theaters, cable distributors, and audiences nationwide.

Over 5,000 entertainment industry professionals have signed an open letter expressing concern about the merger's impact. The Los Angeles Times reported that as studios and TV networks have shed jobs, many entertainment workers have moved to YouTube creator-led businesses, which continue to grow their audiences.

Despite these concerns, the Department of Justice Antitrust Division announced last month it would allow the deal to proceed, stating the merger "is not likely to result in harm to competition or American consumers."

Skydance founder David Ellison purchased Paramount Pictures last year in a deal opposed by former President Donald Trump until a lawsuit against Paramount was settled. Discovery (WBD), now merged with Paramount Skydance, submitted a more generous bid that was declined by the streamer.

The lawsuit marks a rare instance of multiple states intervening in a Hollywood studio merger, underscoring the high stakes involved in what would be the largest merger in Hollywood history.

Sources