A coalition of 12 Democratic attorneys general, led by California, filed a lawsuit Monday in the U.S. District Court for the Northern District of California seeking to block the $110 billion merger between Warner Bros. Discovery and Paramount Skydance.
The lawsuit contends that the proposed merger would violate federal antitrust law by significantly diminishing competition within the film and television industries. According to the complaint, the combined company would control nearly one-third of the U.S. theatrical film distribution market and almost a third of the nation's basic cable programming.
California Attorney General Rob Bonta stated that the "unlawful merger of these two entertainment behemoths would lead to higher prices, lower quality, and less content for film and television, harming movie theaters, basic cable distributors, and ultimately, audiences on every sofa and movie theater seat in the U.S."
The coalition warned that it would seek a temporary restraining order if Warner Bros. Discovery and Paramount Skydance attempt to finalize the merger before the court can issue a ruling. The attorneys general argue that the deal would result in increased prices for consumers, fewer choices, reduced investment in film and television content, and diminished competition for movie theaters and cable providers.
The coalition includes the attorneys general from Arizona, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon, and Washington, in addition to California. The lawsuit was filed despite the deal having received approval from the Trump administration.