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State AGs Prepare Antitrust Complaint Against Paramount-Warner Bros. Discovery

By  |  July 9, 2026
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A coalition of state attorneys general is preparing an antitrust lawsuit that could seek to block Paramount’s proposed acquisition of Warner Bros. Discovery, despite the transaction receiving clearance from the U.S. Department of Justice.

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    According to CNN, attorneys involved in the matter expect the lawsuit could be filed as early as next week, although the timing remains subject to change. CNN reported that California Attorney General Rob Bonta is leading the multistate effort.

    If filed, the lawsuit would mark a new legal challenge for the merger after the Justice Department announced in June that it had closed its investigation without taking enforcement action.

    Reuters reported that the states are examining whether the proposed transaction would violate federal or state antitrust laws by reducing competition in the media and entertainment industry. Officials have not publicly detailed the legal arguments expected to be included in the complaint.

    The proposed merger would combine Paramount and Warner Bros. Discovery, bringing together film studios, television networks and streaming businesses under a single company.

    In a statement issued after the federal review concluded, the Justice Department said its Antitrust Division determined the merger was unlikely to substantially lessen competition in markets including subscription video streaming, linear television and theatrical film production and distribution.

    Related: Paramount Offers EU Concessions to Advance Warner Bros. Discovery Acquisition

    According to Reuters, Paramount has defended the transaction, saying the combined company would be better positioned to compete in an increasingly competitive global media market. The company has also said it expects the merger to strengthen its ability to invest in content and continue producing films for theatrical release.

    Reuters reported that a delay in closing the transaction could have financial implications. Under the terms of the merger agreement, Paramount would be required to pay Warner Bros. Discovery shareholders a quarterly “ticking fee” if the deal is not completed before October.

    State attorneys general have the authority to bring independent antitrust actions even after federal regulators complete their own review of a proposed merger.

    According to CNN, attorneys representing the states were continuing to finalize the complaint this week. Neither the California Attorney General’s Office nor Paramount publicly commented on the reported plans before publication.

    Source: CNN