New York Attorney General Letitia James and attorneys general from 11 other states sued Monday to block Paramount Skydance's proposed $110 billion acquisition of Warner Bros. Discovery, alleging the deal would reduce competition across film, cable television and streaming.
The complaint, filed July 13 in federal court in Northern California, asks a judge to declare the transaction illegal under the Clayton Act and prevent the companies from completing the merger.
The states allege the combination would unite two of the nation's five major film distributors and two of the five largest owners of basic cable channels. Paramount agreed to acquire Warner Bros. Discovery on Feb. 27, 2026, according to the lawsuit.
The complaint says four studios would control more than 85% of wide-release theatrical films after the merger. It also alleges Paramount and Disney would control 59% of the basic cable market, giving the two companies substantial leverage over distributors and consumers.
The companies' combined holdings would include CBS and CNN, more than 20 cable networks and the Paramount Plus, Discovery Plus and HBO Max streaming services. Their sports rights include National Football League games on CBS, the NCAA men's basketball tournament and Major League Baseball programming.
James' office said the merger could lead to higher movie-ticket and cable prices, fewer films and television programs, job losses and reduced bargaining power for theaters and television distributors. Those claims have not been decided by the court.
The lawsuit also argues that consolidating major news and entertainment outlets could narrow the range of voices reaching audiences. The states contend the companies compete directly for content, talent, advertising, distribution and viewers.
Attorneys general from Arizona, California, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, Oregon and Washington joined New York in the case. The filing identifies Paramount Skydance Corp. and Warner Bros. Discovery Inc. as defendants.
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