Prosecutors from 12 U.S. states have filed a lawsuit against the Paramount-Warner Bros. Discovery deal

On July 13, a coalition of attorneys general from 12 U.S. states filed a lawsuit seeking to block Paramount’s acquisition of Warner Bros. Discovery. In their view, the merger would significantly reduce competition in the entertainment market and harm movie theaters, cable TV operators, and consumers.

The lawsuit was filed on July 13 in U.S. District Court in California, led by California Attorney General Rob Bonta. In addition to California, 11 other states have joined the lawsuit. According to the plaintiffs, the deal violates antitrust laws because the merged company would gain excessive influence in the U.S. entertainment market. According to the lawsuit, once the deal is completed, the new media conglomerate will control nearly one-third of film production and about one-third of basic cable television programming in the United States.

"The illegal merger of these two entertainment industry giants will lead to higher prices, a decline in quality, and a reduction in the volume of film and television content, harming movie theaters, cable TV operators, and ultimately American viewers,” Bontá said.

The coalition of attorneys general also demanded that Paramount and Warner Bros. Discovery not close the deal until the legal proceedings are concluded. If the companies refuse, the plaintiffs intend to seek a temporary injunction in court to prevent the deal from closing.

Representatives from Paramount and Bonty's office did not respond to CNBC's requests for comment.

The deal, announced in February 2026, will bring together Paramount and Warner Bros. film studios, as well as the streaming services Paramount+ and HBO Max. The new company will also become the largest owner of television networks in the U.S., combining Paramount’s network of broadcast channels with Warner Bros.’ assets.

Warner Bros. shareholders approved the deal in April, and Paramount CEO David Ellison said during a conference call following the quarterly earnings report that the deal is still expected to close in September, CNBC reported.

The deal received approval from the U.S. Department of Justice in June. Its antitrust division stated that it saw no grounds for harm to competition or to American consumers. Meanwhile, the European Commission is continuing to review the deal: a preliminary decision is scheduled for July 22. Paramount has already offered the European regulator a number of concessions to address antitrust concerns, CNBC reports.

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