An article summarized by Variety:
A coalition of 12 states, led by California Attorney General Rob Bonta, filed an antitrust lawsuit to block the proposed $111 billion merger between Paramount Skydance and Warner Bros., despite the U.S. Department of Justice approving the deal last month. The states argue the merger would violate antitrust law by reducing competition in theatrical film distribution and basic cable licensing, ultimately leading to higher prices, fewer entertainment choices, and less content for consumers.
The lawsuit claims the combined company would control roughly 27% of the wide-release theatrical market, 30% of the blockbuster film market, and 27% of the basic cable market. State officials argue that further consolidation among Hollywood's major studios would hurt movie theaters, cable providers, and audiences by reducing competition and limiting the diversity of films and television programming. The coalition also warned that increased concentration could result in fewer opportunities for creators and fewer stories reaching audiences.
Paramount has defended the merger, arguing it would create a stronger competitor to streaming giants like Netflix, Amazon, and Disney while increasing film production and creating jobs. The DOJ previously concluded the merger would not substantially harm competition, but Democratic attorneys general from the 12 participating states say they will seek a court injunction to stop the deal from closing. The case highlights growing tensions between state and federal antitrust enforcement, with several states taking a more aggressive stance on major corporate mergers.
