A coalition of 12 Democratic attorneys general has filed a lawsuit seeking to stop the proposed $110 billion merger between Warner Bros. Discovery and Paramount Skydance, setting the stage for a major legal battle over one of the largest media consolidation deals in recent years.
The lawsuit targets the planned merger between Warner Bros. Discovery and Paramount Skydance, the company owned by David Ellison, the son of billionaire Larry Ellison, who has been described as an ally of President Donald Trump.
Warner Bros. Discovery owns a broad portfolio of media properties, including CNN, HBO Max, and numerous other television and entertainment brands.
CNN media correspondent Brian Stelter reported Monday that California Attorney General Rob Bonta is leading the multistate legal challenge.
“California attorney general Rob Bonta is leading the 12-state coalition,” Stelter said. “He’s about to hold a press conference in L.A. He says in a statement that this merger would, quote, ‘Lead to higher prices, lower quality and less content for film and TV, harming movie theaters, basic cable distributors, and ultimately audiences on every sofa and movie theater seat in the U.S.’”
The lawsuit argues that the proposed merger would negatively affect consumers and the broader entertainment industry by reducing competition and ultimately leading to diminished choices for viewers.
According to Stelter, Paramount has been preparing for the possibility of legal action and has consistently defended the transaction.
He noted that the company has emphasized regulatory approvals already granted in other parts of the world.
“Now, Paramount has been bracing for this potential lawsuit,” Stelter said. “So it’s been pointing out in recent statements that regulators in other markets all around the world have already blessed this deal.”
Over the weekend, Paramount reiterated its support for the merger, arguing that combining the companies would strengthen their ability to compete against major technology and streaming firms.
“This transaction will create a stronger challenger to dominant global streaming and technology platforms,” the company said in a statement.
Paramount also maintained that the merger would provide benefits for both consumers and the entertainment industry.
“It will expand consumer choice, it will increase investment in premium content and theatrical distribution and create more opportunities for creators and workers,” the company said.
Stelter predicted that Paramount intends to aggressively defend the transaction in court.
“So, you can tell Paramount is going to contest this lawsuit vigorously,” he said, adding that the company has already retained a Supreme Court litigator in anticipation of a potentially lengthy legal fight.
According to Stelter, Paramount has argued that expanding through the merger is necessary to remain competitive with the largest technology companies operating in the streaming marketplace.
The lawsuit now places the fate of the merger in the hands of the courts.
“But now…a judge will have to weigh in and start to assess the situation,” Stelter said.
Beyond the legal arguments over competition, Stelter said critics of the merger have raised political concerns surrounding the proposed transaction.
He noted that opponents contend the deal would transfer control of CNN and other major media assets to a family viewed as aligned with President Trump.
Stelter also said many in Washington believe the Justice Department approved the merger because of what they describe as the close relationship between Trump and Larry Ellison.
The lawsuit now opens a new chapter in the battle over the proposed merger, with Democratic attorneys general seeking to halt the transaction while Paramount prepares to defend what it says is a necessary move to compete in the rapidly evolving global media landscape.
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