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What just happened? Paramount Skydance's $110 billion acquisition of Warner Bros. Discovery has run into its biggest obstacle yet. California and 11 other states have filed an antitrust lawsuit seeking to block the mega-merger, claiming it would create a media giant with the power to raise prices, cut jobs, and reduce choice for moviegoers and TV viewers alike.
The lawsuit was filed in federal court in Sacramento on Monday, just a month after the Department of Justice cleared the deal without conditions. California is joined by Arizona, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon, and Washington, all states with Democratic attorneys general.
The complaint alleges that combining the two companies would harm competition in wide-release theatrical film distribution and the licensing of basic cable channels, with the damage trickling down to consumers in the form of pricier movie tickets and cable packages. It warns that the deal would "create a media behemoth."
