A coalition of twelve US state attorneys general, led by California, has filed a lawsuit seeking to block Paramount Skydance’s proposed $110 billion acquisition of Warner Bros.
The legal action marks a significant escalation in the regulatory review of the largest merger in Hollywood history, with the states arguing the deal poses a threat to competition and consumer choice in the media landscape.
The filing intensifies pressure on Paramount Global (PSKY) as it navigates a complex approval process.
While the Department of Justice and the Federal Trade Commission remain the primary federal regulators, coordinated state-level challenges can delay closings, increase legal costs, and complicate financing structures for mega-deals.
The lawsuit underscores the growing political and legal resistance to media consolidation in the US.
This development comes just days before Paramount Skydance is scheduled to report its second-quarter earnings on July 21.
Investors will be closely watching for any commentary from management on the regulatory timeline and potential impacts on the transaction.