NEW YORK (AP) — Twelve states challenged Paramount's takeover of Warner Bros. Discovery on Monday, filing a lawsuit that argues the $81 billion mega merger would "extinguish competition" in Hollywood and threaten jobs across the industry.
The office of California's attorney general, who is leading the case, said the states are asking Warner Bros. and Paramount to not close their merger "until after the judicial process concludes" — and if the companies do not agree, the coalition will then file a temporary restraining order.
"The unlawful merger of these two entertainment behemoths would lead to higher prices, lower quality, and less content for film and television, harming movie theaters, basic cable distributors, and ultimately, audiences on every sofa and movie theater seat in the U.S.," said Attorney General Rob Bonta said in a statement.
Paramount, which was bought by Skydance just last year, wants all of Warner. That would mean putting HBO Max, cult-favorite titles like "Harry Potter" and even CNN under the same roof with CBS, "Top Gun" and the Paramount+ streaming service. The states' lawsuit could throw a wrench in those plans, at least for now. The antitrust case arrives at a pivotal time for the Paramount-Warner transaction — which, after months of what became a very public bidding war, received shareholders' stamp of approval in April and then a blessing from the Trump administration just last month.