California's attorney general will decide within weeks whether to sue to block Paramount's $110 billion acquisition of Warner Bros Discovery, a deal that has drawn opposition from Hollywood and lawmakers.
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California AG Bonta weighs lawsuit to block Paramount's $110B Warner deal
California's attorney general will decide within weeks whether to sue to block Paramount's $110 billion acquisition of Warner Bros Discovery, a deal that has drawn opposition from Hollywood and lawmakers.
California Attorney General Rob Bonta will soon decide whether to sue to block Paramount's $110 billion acquisition of Warner Bros Discovery, he told Reuters, as the state weighs antitrust action against the largest media merger in history.
"In general, corporate promises to address antitrust concerns are better when backed up by potential divestitures," Bonta said in an interview, signaling a preference for structural remedies over behavioral commitments.
The $110 billion deal would combine Paramount Global — already merged with Skydance Media in August 2025 — with Warner Bros Discovery, creating a studio capable of releasing 30 theatrical films annually. Paramount has argued the merger is necessary to compete with Netflix, Amazon Prime Video and Disney+, which together command more than 500 million global streaming subscribers.
A California-led lawsuit could delay or derail the transaction, which is already facing a private antitrust suit filed by five streaming subscribers in April. A hearing in that case is scheduled for July 16 in federal court in Oakland. If blocked, the deal's collapse would reshape competitive dynamics across Hollywood and the streaming industry.
Paramount on June 3 filed a motion to dismiss the private lawsuit, calling it a "clumsy attempt to politicize antitrust litigation." The company's filing argues the merger "presents an opportunity to revitalize Hollywood and the industry at large by creating greater competition that benefits consumers, theaters and workers alike." Jeffrey Kessler, lead counsel for Paramount and co-executive chairman of Winston Taylor, said the plaintiffs "have offered no evidence that the transaction will harm competition."
The deal has drawn broad opposition. More than 5,500 filmmakers, actors and other Hollywood professionals have signed an open letter opposing the merger, arguing it would eliminate jobs, raise prices and reduce competition. House Democrats have urged Bonta to "closely scrutinize" the transaction, and the California AG's office has indicated it is mulling legal action.
Foreign ownership adds another layer of scrutiny. The merged entity would be 49.5% owned by foreign investors, with about 38.5% held by sovereign wealth funds from Saudi Arabia, Qatar and Abu Dhabi. Those three Middle Eastern countries have pledged a total of $24 billion toward Paramount's Warner Bros bid, according to FCC filings.
Makan Delrahim, chief legal counsel of Paramount Skydance, has accused opponents of the deal of holding "antisemitic views," a claim that has drawn criticism. Delrahim has not identified which opponents he was referring to.
The last major antitrust challenge to a media merger — the Justice Department's 2022 lawsuit to block Penguin Random House's acquisition of Simon & Schuster — resulted in a court order blocking the deal. That case centered on market concentration in the publishing industry, a similar structural argument to what Bonta may pursue against Paramount-WBD.
This article is for informational purposes only and does not constitute investment advice.
[1] California to decide soon whether it will seek to block Paramount deal[2] Paramount Wants Lawsuit Seeking to Block Warner Bros. Deal Tossed: ‘Clumsy Attempt to Politicize Antitrust Litigation’ - Variety Australia[3] Paramount slams lawsuit to block Warner Bros. merger: 'Misguided attempt to politicize antitrust law'[4] Paramount Wants Lawsuit Seeking to Block Warner Bros. Deal Dismissed
