A coalition of 12 states has filed a lawsuit in an Oakland federal court to block the proposed merger between Hollywood giants Paramount and Warner. The legal action, led by California Attorney General Rob Bonta, contends that the deal would result in higher prices, lower quality, and reduced content options for audiences. The states involved in the challenge include Arizona, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon, and Washington, alongside California.
The lawsuit arrives despite the US Department of Justice (DOJ) having previously green-lighted the acquisition in June without conditions, stating at the time that the transaction was unlikely to harm market competition or consumers. However, the states argue that the merger would violate antitrust laws. According to the court filing, the combined entity would control more than a quarter of the revenue generated by wide-release theatrical films and basic cable channels in the United States.
"Audiences on every sofa and in every movie seat would feel the impact of this unlawful merger," Bonta stated during a news conference, characterizing the consolidation of two of Hollywood's final five legacy studios as an "unlawful" move to "extinguish competition."
Critics of the deal have suggested that political influence played a role in the DOJ's initial approval. Arizona Attorney General Kris Mayes pointed to the connections held by Paramount CEO David Ellison, whose father is Oracle co-founder Larry Ellison, a prominent donor to President Donald Trump. Mayes alleged that the administration is "rolling over for corporate consolidation," while Bonta accused the former president of being "pro-rigged economy."
Paramount has defended its acquisition plans, framing the lawsuit as a distortion of settled antitrust law. The company maintains that the merger is necessary to create a "stronger competitor against dominant streaming and technology platforms" that have negatively impacted theatrical exhibition and industry jobs. Paramount CEO David Ellison intends to use the merger to position his company as a major rival to industry leaders like Netflix and Disney. While the US legal battle unfolds, the buyout is also currently facing antitrust reviews in other regions, including Europe.
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Monday's suit argues that the tie-up would violate antitrust law.
There was no immediate statement from the White House.
