Twelve US states have filed a lawsuit to block Paramount Global’s proposed $111 billion acquisition of Warner Bros.
Discovery, marking a significant escalation in the regulatory scrutiny surrounding the Hollywood mega-merger.
The legal action, led by California Attorney General Rob Bonta, argues that the deal would consolidate too much power in the media sector, ultimately leading to higher subscription prices for consumers and a reduction in the diversity and volume of film and television content available.
The lawsuit targets the core rationale of the transaction, which is backed by Oracle co-founder Larry Ellison.
Ellison, a prominent supporter of former President Donald Trump, has positioned the acquisition as a strategic move to create a dominant media powerhouse capable of competing with tech giants in the streaming wars.
However, state regulators contend that the merger would eliminate a key competitor, allowing the combined entity to exert undue influence over content distribution and pricing.