California and 11 other US states on Monday sued to block Paramount Skydance’s $110 billion takeover of Warner Bros. Discovery, calling the largest merger in Hollywood history a threat to competition in film and television.
The lawsuit, filed in federal court in northern California, marks a dramatic turn in the regulatory battle over the deal — and a direct challenge to the Trump administration’s Justice Department, which approved the merger last month without requiring any divestitures or concessions.
California Attorney General Rob Bonta, who is leading the coalition, said the combination of two of Hollywood’s five major film distributors would lead to “higher prices, lower quality, and less content” for audiences.
“In this country, no one is above the law,” Bonta said. “California and our sister states are fighting for free and fair markets, not rigged markets. America has no kings in government or our economy.”
The states allege the deal violates the Clayton Act, the federal law that bars mergers likely to substantially reduce competition.
