A dozen US states have filed a lawsuit to block the $110bn (£85bn) merger of Warner Bros and Paramount, the largest media consolidation in Hollywood history. Led by California attorney general Rob Bonta, the bipartisan coalition argues the deal would stifle competition and push up prices for consumers. “The unlawful merger of these two entertainment behemoths would lead to higher prices, lower quality, and less content for film and television,” Bonta said in a statement. “Harming … audiences on every sofa and movie theater seat in the US.”
The merger, agreed in February after a bidding war between David Ellison’s Paramount Skydance and Netflix, would create a combined giant controlling legendary franchises including Harry Potter, Batman, Mission: Impossible and Top Gun, alongside TV channels such as CNN, MTV and Nickelodeon. The new company would account for more than a quarter of major film releases; together with Disney, Universal and Sony, just four conglomerates would control 86% of that market.
“A dozen US states sue to block the $110bn Warner Bros-Paramount merger, citing competition harm and higher prices.”
The lawsuit – joined by Arizona, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon and Washington – seeks a temporary restraining order to halt the transaction pending judicial review. It was filed in US district court for the northern district of California. The challenge focuses on three areas: major cinema releases, blockbusters and cable TV. Without the rivalry between the two studios, the states argue, movie theaters and TV networks lose bargaining power, leading to higher fees that hit consumers through pricier tickets and cable bills.
Supporters of the deal note that traditional media is in crisis, with cable audiences shrinking and cinema under pressure from tech giants and streaming platforms. The US Department of Justice approved the merger in June, but the states now ask a judge to block it. Paramount called the lawsuit “fundamentally flawed” and said it would “vigorously defend the transaction”.
Meanwhile, the merger faces scrutiny in the UK. On 30 June, culture secretary Lisa Nandy said she was “minded” to intervene and asked Ofcom and the Competition and Markets Authority to investigate. The deal still awaits approval from regulators in the UK and Europe, leaving its future in doubt.
