A bipartisan coalition of 12 U.S. state attorneys general filed a lawsuit on Monday to block the roughly $110 billion merger of Paramount Skydance and Warner Bros. Discovery, arguing the combined entity would control nearly a third of films and basic cable TV programming. California Attorney General Rob Bonta leads the case, joined by Arizona, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon, and Washington. The complaint was lodged in the U.S. District Court for the Northern District of California.
The merger would unite Paramount and Warner Bros. film studios, streaming platforms Paramount+ and HBO Max, and the largest portfolio of U.S. TV networks. The U.S. Department of Justice previously approved the deal, and Paramount CEO David Ellison has said closing remains on track by September.
Paramount is reportedly considering relocating operations out of California if the lawsuit proceeds, having already signed a 10-year lease for studio space in Bayonne, New Jersey, that could yield a 40% tax credit.