California leads a dozen states in suing to block Paramount's $110 billion merger with Warner Bros. Discovery

Paramount Skydance, led by David Ellison, completed a $110 billion deal to acquire Warner Bros. Discovery after winning approvals from regulators in nearly 70 countries, including the United States, Europe, China, Canada and Mexico. Nevertheless, a group of twelve states, with California Attorney General Rob Bonta as the lead plaintiff, filed a federal antitrust suit on July 13, 2026, contending that the merger would substantially reduce competition in wide-release theatrical distribution, high-grossing film markets and basic cable channel licensing.

U.S. District Judge Araceli Martínez-Olguín issued a temporary injunction, forcing the companies to wait until five days after a merits decision or June 1, 2027, before closing. Because the merger agreement imposes a “ticking consideration” fee of about $7 million per day after September 30, 2026, the litigation is already costing Paramount hundreds of millions. Settlement negotiations have broken down amid accusations of leaks, and Paramount has asked the court to require a $1.88 billion bond from the states and the Writers Guild of America. The dispute has escalated further as Iowa and Montana petitioned the U.S. Supreme Court to allow them to sue the plaintiff states directly, framing the case as a battle over state versus federal authority in regulating national media consolidation.