California Attorney General Rob Bonta is leading a 12-state coalition to block Paramount Skydance’s $110 billion purchase of Warner Bros. Discovery, citing concerns that the merger would create a reduction in competition and in the quality of cinema.
🚨@AGRobBonta on Paramount–Warner Bros. merger: "David Ellison may think this is an offer we can't refuse, but I'm here to say he's wrong." pic.twitter.com/YbBx8xrR4Y
— Off The Press (@OffThePress1) July 13, 2026
A coalition of 12 states have filed a lawsuit to block the Warner Bros/Paramount merger.
— DiscussingFilm (@DiscussingFilm) July 13, 2026
The coalition includes Arizona, California, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon and Washington. pic.twitter.com/W1x4eKZMD9
Bonta spoke on the matter, stating,
The unlawful merger of these two entertainment behemoths would lead to higher prices, lower quality, and less content for film and television, harming movie theaters, basic cable distributors, and ultimately, audiences on every sofa and movie theater seat in the U.S....Consolidation here not only leads to higher prices — it also leads to fewer opportunities for important stories to come to life, and fewer ways for audiences to encounter stories, ideas, and perspectives beyond their own experiences.
The complaint alleges that the merger would violate a federal antitrust law that prohibits mergers that may substantially lessen competition. The other states involved in blocking the merger include Arizona, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon, and Washington.
According to the statement from Bonta's office, the merger would significantly reduce competition in film distribution and licensing basic cable television channels, saying:
Movie theaters rely on competition between Paramount and Warner Bros. to incentivize creativity and secure competitive prices and terms for themselves and for audiences. Paramount and Warner Bros. also compete to market their basic cable channels. To acquire the rights to distribute that content to subscribers, distributors negotiate with Paramount, Warner Bros., and other cable channel owners. Alternatives are essential in these negotiations as is the leverage that each entertainment company provides to distributors.
Several members of the industry also staunchly rejected the deal, citing concerns of mass layoffs alongside concerns about reduced competition.
Paramount responded to the claim in a statement to Politico, saying the lawsuit "in the most generous light, reflects a fundamentally flawed application of the antitrust laws and is wrong on both the facts and the law." The spokesperson continued, saying, "We will vigorously defend the transaction and demonstrate that this challenge is inconsistent with sound competition policy and the competitive realities of the media marketplace.”
The merger was supported by the Department of Justice, which investigated the merger earlier this year. The DOJ concluded that the merger would "increase competition across the media and entertainment ecosystem, with benefits for American consumers and workers.”
The move comes as young directors are transforming the cinema landscape, recapturing audiences that major production companies have lost. Recently, the film "Obsession" was produced on a $750,000 budget, and grossed approximately $400 million, prompting movie theaters to prolong the film's theatrical window and delaying its release on digital platforms. Compare that to films like "Mandalorian," which suffered a catastrophic $100 million loss. Filmmakers are already proving that the market doesn't need major companies to produce hits — if anything, they are actively struggling to produce original content that excites audiences. Competition does exist within the industry, it's just not coming from the dominant companies.