12 state attorneys general filed an antitrust suit Monday to stop Paramount’s $110 billion merger with Warner Bros. Discovery, and New York City Mayor Zohran Mamdani publicly endorsed the effort.
Mamdani said the deal would give one company nearly a third of the movies and cable channels Americans watch, lift streaming and cable prices, and threaten New York entertainment jobs and theaters.
New York Attorney General Letitia James argued the merger would end more than a century of competition between the studios and create a company with unprecedented influence over news and entertainment.
Paramount countered that the lawsuit will delay the transaction, hurt entertainment workers and strengthen tech companies it says already dominate the sector.
With the DOJ's approval, can twelve states successfully block this $110 billion media mega-merger in court?
Will blocking this deal save Hollywood jobs, or will it ultimately cede the entertainment industry to Big Tech?
As AI reshapes entertainment, can traditional studios compete against tech giants without massive, controversial consolidation?
States Sue to Block $111 Billion Paramount–WBD Merger: Legal, Financial, and Industry Fallout
Overview
On July 13, 2026, twelve state attorneys general filed a federal lawsuit in California to block the $111 billion merger between Paramount Skydance and Warner Bros. Discovery, arguing it would harm consumers by raising prices, lowering quality, and reducing content. California Attorney General Rob Bonta, who had already strengthened his office’s antitrust team, leads the effort. The states’ legal strategy draws on the recent Nexstar case, where a judge sided with state attorneys general to halt a federally approved merger, causing significant delays. This highlights how state-level actions can challenge even major, federally cleared deals.