States Prepare Lawsuit to Block Paramount’s Merger With Warner Bros.

A group of states are preparing to file a lawsuit to block Paramount’s acquisition of Warner Bros. Discovery as soon as this week, according to four people briefed on the plans, a legal challenge that would create a major obstacle for one of the biggest media mergers in history.

A draft of the lawsuit currently circulating argues that the $111 billion deal would harm competition in the market for so-called tent pole films, the expensive blockbusters that make up a large portion of studio revenues, among other claims, two of the people said.

California has taken the lead on the lawsuit, and states including New York, Washington and Connecticut have said they will join the effort, according to three of the people, as well as another person familiar with the states’ plans. All of them spoke on condition of anonymity to discuss a sensitive legal matter before it was public.

Once the lawsuit is finalized, the states could decide to delay filing it or scrap it completely. Reuters earlier reported states could sue as soon as this week.

Article source: https://www.nytimes.com/2026/07/12/business/state-ag-lawsuit-paramount-warner-bros.html