A dozen state attorneys general have filed a last-ditch legal challenge to stop the proposed $110 billion merger between Paramount and Warner Bros. Discovery, arguing the deal would stifle competition and lead to higher costs for consumers.
The coalition of states warns that combining the two media giants would create a "media behemoth" with outsized power to raise prices for movie tickets and streaming subscriptions, while also squeezing cable TV distributors. The lawsuit marks a significant escalation in opposition to the merger, which has already faced antitrust scrutiny from federal regulators.
"This merger would concentrate unprecedented control over the content Americans watch and how they watch it," said a spokesperson for the attorneys general. "We believe it violates antitrust laws and will harm consumers, workers, and smaller competitors."
If the merger is delayed by litigation, Paramount could face hundreds of millions of dollars in penalties under the deal's terms, adding urgency to the companies' efforts to close the transaction.
The states' move comes amid growing bipartisan concern over consolidation in the entertainment industry, with critics arguing that a handful of corporations now control the vast majority of film, television, and streaming markets.