State AGs seek court order to halt Paramount-Warner Bros. merger
Officials warn media deal could close before antitrust case concludes
State attorneys general asked a federal court to temporarily block Paramount's proposed merger with Warner Bros. Discovery, arguing the media deal could be completed before their antitrust lawsuit is resolved. The request comes after officials warned the transaction could close as early as July 22.
States seek temporary restraining order
As per Deadline, California Attorney General Rob Bonta and attorneys general from 11 other states filed a motion in federal court in Sacramento on July 13 seeking a temporary restraining order and a preliminary injunction.
If granted, the order would pause the proposed $110 billion merger while the court considers the states' antitrust challenge. The European Union is expected to issue its decision on the transaction around July 22, while the US Department of Justice has already cleared the deal.
Officials cite competition concerns
In their lawsuit, the states argue the merger would significantly reduce competition in theatrical film distribution, major film releases and basic cable channel licensing.
The filing also claims the transaction would increase market concentration to unlawful levels and could lead to layoffs, content cancellations and long-term harm to competition if allowed to proceed before the case is decided.
The attorneys general argued that unwinding the merger after it closes would be extremely difficult, making immediate court intervention necessary.
Paramount vows to defend merger
Paramount rejected the lawsuit, calling it a flawed interpretation of antitrust law.
The company said it would vigorously defend the transaction, arguing that delaying the merger would hurt entertainment workers already affected by industry disruption and increasing competition from technology companies.
According to the court filing, Paramount declined the states' request to voluntarily delay closing the transaction while the legal challenge moves forward. The company has until March 2027, with a possible extension to June 2027 under the merger agreement, to complete the deal if regulatory reviews remain ongoing.
