California and 11 other states have sued to block Paramount Global's $110 billion acquisition of Warner Bros. Discovery, alleging the merger would harm competition and consumers by combining two major Hollywood players.

A coalition of 12 states, led by California Attorney General Rob Bonta, has filed a lawsuit in federal court to block Paramount Global's roughly $110 billion acquisition of Warner Bros. Discovery, arguing the deal would stifle competition in Hollywood. The suit, filed July 13, 2026, in the U.S. District Court for the Northern District of California (Case No. 4:26-cv-07116), alleges the merger violates Section 7 of the Clayton Act.

The complaint states that combining the two entertainment giants would eliminate competition in film distribution and basic cable licensing, ultimately leading to "higher prices, lower quality, and less content for film and television," according to Attorney General Bonta. The plaintiff states — Arizona, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon, and Washington — join California in the challenge.

Paramount, which itself was acquired by Skydance Media last year, has pushed back against the lawsuit, calling it "fundamentally flawed." The company stated it plans to "vigorously defend" the transaction, asserting that the merger would create a stronger competitor against dominant streaming and technology platforms. Details surrounding the Skydance acquisition of Paramount, including its specific valuation and investors, have not been disclosed via Form D filings as of this reporting.

The proposed merger would bring together key streaming assets, including Paramount+ and HBO Max/Discovery+, alongside extensive content libraries like CBS and CNN. Reporters Without Borders has voiced support for the lawsuit, citing concerns about media pluralism. The outcome of this multi-state challenge will set a precedent for future consolidation in the increasingly concentrated media landscape, with the specifics of the suit highlighting the ongoing tension between market consolidation and antitrust enforcement.