Twelve U.S. states. Led by California, have filed a lawsuit to block Paramount’s $110 billion acquisition of Warner Bros; Discovery, arguing the merger would reduce competition and harm consumers, according to the suit filed in the Northern District of California. The states allege the deal violates Section 7 of the Clayton Act, a federal antitrust law that prohibits mergers that threaten competition.

Concerns Over Market Consolidation

The merger would combine two of the largest entertainment companies in the U.S., uniting movie studios, television newsrooms, sports programming, streaming services like Paramount+ and HBO Max, and a range of cable channels including MTV, HGTV, and CNN. California Attorney General Rob Bonta said the merger would result in “higher prices, lower quality, and less content” for consumers, according to a statement from the office.

Paramount has pushed back against the lawsuit, accusing the attorneys general of getting both the facts and antitrust law wrong. The company warned that blocking the deal would hurt entertainment workers who have already lost jobs due to technological disruptions in the industry.

Support from Advocacy Groups

The American Economic Liberties Project praised the lawsuit and urged more states to join. Alvaro Bedoya, a senior advisor at the group, said he met with workers and business owners who would be negatively impacted by the merger. “The rich guys who run Paramount can say what they want, but the people who actually work for them know that this will kill jobs and screw over the small businesses that are the lifeblood of this industry,” he said.

Research Director Matt Stoller added that the merger would lead to layoffs and higher prices. “State enforcers have done the right thing in seeking to block it. It is time to stop oligarchs from strip-mining our culture and selling America off for parts,” he said.

Political Ties and Public Statements

The merger would give the Ellison family—Larry and David Ellison,effective ownership of the combined company. The family has shown strong support for President Trump. The president has repeatedly praised the Ellisons and publicly urged the sale of Warner Bros’ CNN to new owners.

The lawsuit is being led by California’s AG, along with Arizona, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon, and Washington. The states argue the merger would create a media monopoly with far-reaching influence over entertainment, news, and sports content.