Twelve States Sue to Block Paramount-Warner Bros. Merger

A coalition of 12 U.S. states has filed a lawsuit seeking to block Paramount's proposed acquisition of Warner Bros. Discovery, arguing that the $81 billion transaction would significantly reduce competition in the entertainment industry, Wyatte Grantham-Philips reported for The Associated Press (AP).

Regulators are challenging the proposed media merger. (Photo: The Studios At Paramount)

California Attorney General Rob Bonta, who is leading the case, said the merger would result in higher prices, fewer film and television productions, and lower-quality content for consumers.

"Audiences on every sofa and in every movie theater seat would feel the impact of this unlawful merger," Bonta said during a news conference in Los Angeles.

If completed, the transaction would combine two of Hollywood's remaining major legacy studios, bringing together CBS, Paramount+, HBO Max, CNN, Warner Bros., and the Harry Potter franchise under a single corporate structure.

The lawsuit also argues that the merger would harm movie theaters and cable television distributors.

The states are asking Paramount and Warner Bros. Discovery to postpone completing the transaction until the judicial process has concluded. If the companies decline, the coalition plans to seek a temporary restraining order.