12 states challenge Paramount's takeover of Warner, say merger would 'extinguish competition'

By — Wyatte Grantham-Philips, Associated Press Wyatte Grantham-Philips, Associated Press Leave your feedback Share Copy URL https://www.pbs.org/newshour/nation/12-states-challenge-paramounts-takeover-of-warner-say-merger-would-extinguish-competition Email Facebook Twitter LinkedIn Pinterest Tumblr Share on Facebook Share on Twitter 12 states challenge Paramount's takeover of Warner, say merger would 'extinguish competition' Nation Jul 13, 2026 4:45 PM EDT NEW YORK (AP) — Twelve states sued to block Paramount's takeover of Warner Bros. Discovery on Monday, arguing that the $81 billion merger would "extinguish competition" in Hollywood and lead to fewer choices for consumers across the U.S. "Audiences on every sofa and in every movie (theater) seat would feel the impact of this unlawful merger," California Attorney General Rob Bonta, who is leading the case, said in a news conference from Los Angeles. He said the deal would result in higher prices, fewer movies and TV shows and lower quality of content overall. Educate your inbox Subscribe to Here’s the Deal, our politics newsletter for analysis you won’t find anywhere else. A Paramount-Warner combo would bring together two of Hollywood's last five legacy studios. It would also mean putting Warner's HBO Max, libraries filled with cult-favorite titles like "Harry Potter" and even CNN under the same roof of Paramount-owned CBS and the Paramount+ streaming service. In Monday's complaint, the states said such a tie-up would also "inflict substantial harm" on movie theatres and basic cable distributors. Bonta's office said the states are asking Warner and Paramount to not close this merger "until after the judicial process concludes." And if the companies do not agree, the coalition would then file a temporary restraining order. Paramount said Monday's lawsuit "distorts settled antitrust law" and maintained that its merger would instead create a "stronger competitor against dominant streaming and technology platforms who have harmed the market for theatrical exhibition and jobs in the entertainment industry." The company, which was bought by Skydance just last year, vowed to "vigorously defend" the transaction. Warner deferred to Paramount for comment. Beyond California, states joining Monday's lawsuit include Arizona, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon and Washington. Where Paramount's takeover of Warner stands Watch the segment in the player above. Monday's antitrust case arrives at a pivotal time for the Paramount-Warner transaction — which, after months of what became a very public bidding war with Netflix , received shareholders' stamp of approval in April and then a blessing from President Donald Trump's administration just last month. The companies have hoped to close their deal sometime in the third quarter of this year, recently signaling an effort to complete process in the coming weeks. The states' lawsuit could throw a wrench in