State Attorneys General Plan Antitrust Suit to Block Paramount Skydance Warner Bros Discovery Merger

Attorneys general from California, New York, Connecticut, and Washington state plan to file an antitrust lawsuit seeking a temporary injunction against the proposed $110 billion merger between Paramount Skydance and Warner Bros Discovery. The suit is expected to be filed Monday or Tuesday.

The complaint alleges that a combined company would reduce competition in film production, theatrical distribution, and streaming services. Sources familiar with the draft document stated the merged entity could limit choices for audiences and squeeze out other market participants.

The suit does not address political interference claims or the June 12 Department of Justice approval. One source described the action as focused on antitrust issues rather than broader concerns.

A Paramount Skydance spokesperson stated the company continues to engage with state attorneys general and is prepared to address legitimate antitrust issues. The company noted that dozens of antitrust authorities in France, Canada, Brazil, Saudi Arabia, Germany, Australia, and China have cleared the transaction.

The company also said the deal would create a stronger competitor to global streaming and technology platforms, expand consumer choice, increase investment in premium content, and create opportunities for creators and workers.

The attorneys general seek a temporary injunction to halt the merger. Whether a federal judge grants the injunction or the companies offer concessions remains unresolved. Raymond James analyst Ric Prentiss wrote that the increasing likelihood of remedies is affecting PSKY stock while hopes of closing before additional lawsuits support WBD shares.