A coalition of states led by California and New York is reportedly preparing a lawsuit aimed at stopping Paramount Skydance from acquiring Warner Bros. Discovery, setting the stage for what could become one of the most significant antitrust battles in the media industry in recent years.
According to a Reuters report published Friday, officials in several states are expected to file suit in the coming weeks in an effort to block the proposed merger. The challenge would mark a major escalation in the ongoing debate surrounding media consolidation and the growing concentration of ownership among a handful of powerful entertainment companies.
The proposed legal action comes after Paramount’s merger with Skydance last year generated substantial criticism from lawmakers, industry figures, and media observers. Concerns centered on antitrust issues and fears that combining major media entities could further reduce competition in an already concentrated marketplace.
Those concerns intensified after Paramount settled a lawsuit brought by President Donald Trump against CBS News over a “60 Minutes” interview with then-Vice President Kamala Harris. Numerous legal experts had reportedly viewed the lawsuit as weak on First Amendment grounds.
The settlement fueled speculation that Paramount’s desire to secure approval for its merger from Federal Communications Commission Chairman Brendan Carr may have influenced the company’s decision-making process. Critics argued that political considerations may have played a role in resolving the dispute rather than continuing to fight it in court.
Following the Skydance merger, leadership changes at CBS News generated additional controversy. Paramount Skydance CEO David Ellison appointed Bari Weiss, founder of Free Press, as editor in chief of CBS News.
Weiss’s tenure has been marked by a series of high-profile disputes and personnel changes. She faced criticism from both media commentators and some inside the organization after delaying a “60 Minutes” segment focused on the CECOT prison facility in El Salvador. Her leadership also coincided with the departure of several longtime staff members and broader changes within the news division.
The turmoil extended beyond internal staffing matters. CNN anchor Anderson Cooper reportedly declined Weiss’s offer to take over the anchor role at CBS Evening News and also chose not to renew his contract with “60 Minutes.”
Meanwhile, Tony Dokoupil, who was ultimately selected for the anchor position, has faced a number of negative headlines involving technical problems and accusations of bias.
After completing its merger with Skydance, Paramount turned its attention toward Warner Bros. Discovery, the parent company of CNN. The proposal immediately drew opposition from some elected officials and industry leaders.
Sen. Elizabeth Warren publicly described the proposed merger as an “antitrust disaster.” Opposition also emerged from within Hollywood, where more than 1,000 actors, directors, producers, and other entertainment professionals signed an open letter objecting to the deal. The letter argued that the merger would further consolidate media ownership at a time when competition is already limited.
Reuters reporter Jody Godoy cited sources familiar with the matter who said California and New York are among the states preparing legal action. While the report did not identify other participating states, it noted that the lawsuit would represent one of the most aggressive efforts yet by states seeking a larger role in antitrust enforcement.
California Attorney General Rob Bonta recently criticized what he described as the Trump administration’s “abdication” of federal antitrust enforcement responsibilities and has expressed concerns regarding the merger. A spokesperson for Bonta’s office told Reuters that California’s investigation remains active but declined additional comment.
Even if the lawsuit ultimately fails, it could significantly delay the transaction. Reuters noted that the litigation could postpone the merger for several months, particularly if a judge grants an injunction preventing the deal from moving forward while the case is litigated.
The merger also remains under review by the Department of Justice. According to Reuters, the department issued subpoenas in late March seeking information about the potential impact on studio production, content rights, streaming competition, and movie theaters. A decision from federal regulators is expected soon.
Despite the growing opposition, Paramount remains confident in the transaction.
“We will continue to fight against any attempt to derail a deal that plainly benefits consumers, creators, and the industry as a whole,” a company spokesperson said.
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