Paramount Skydance has formally requested that a multistate antitrust lawsuit challenging the Paramount-Warner Bros. Discovery merger be tied to an existing subscriber lawsuit over the same merger. This legal move links a case filed by 12 state attorneys general with a separate suit from Paramount+ subscribers, both currently pending in federal court.
The states’ case, led by California Attorney General Rob Bonta, aims to block the merger on the grounds that it would create an entertainment conglomerate with excessive market power. The states argue this could lead to higher prices, reduced content availability, and less competitive consumer terms across distribution, exclusivity, and licensing agreements. The subscriber lawsuit similarly focuses on antitrust concerns, contending that the merger would harm consumers and curtail competition in the streaming market.
In their joint filing, Paramount Skydance and Skydance Media formally supported California’s administrative motion to relate the two cases before the court. Warner Bros. Discovery, also named in the states’ lawsuit, backed this request. This procedural consolidation suggests that both cases will likely be assigned to Judge Araceli Martinez-Olguin, who is already presiding over the subscriber lawsuit.
Paramount has defended the merger as a beneficial move to strengthen competition in the entertainment industry. A company spokesperson stated in April that combining Paramount and Warner Bros. Discovery would foster a more robust competitor capable of supporting creative talent and offering consumer choice. Paramount maintains that the subscriber lawsuit lacks merit and has pledged to vigorously defend the transaction against the multistate legal challenges.
The states, meanwhile, emphasize the risk the merger poses to a diverse and free market, stressing the importance of protecting the film and entertainment industry’s competitive integrity. Attorney General Bonta highlighted concerns about the merged entity’s potential dominance over theaters, cable networks, and streaming services.