California leads a coalition of state attorneys general filing a lawsuit today to block Paramount Skydance’s (PSKY) $110 billion acquisition of Warner Bros. Discovery (WBD).
The lawsuit alleges the merger of these two major Hollywood studios violates antitrust laws. It claims the deal would harm competition, reduce consumer choice, and cause job losses.
This legal challenge follows federal clearance from the U.S. Department of Justice in June. The DOJ concluded its investigation by stating the transaction was unlikely to harm competition.
State attorneys general maintain the right to pursue independent legal challenges regardless of federal reviews. The lawsuit threatens to delay the merger’s closing. Failure to complete the deal in the coming months could trigger costly penalty fees for Paramount.