OAN Staff Lillian Mann
1:58 PM – Monday, July 13, 2026
California Democrat Attorney General Rob Bonta is reportedly leading a coalition of 12 states in challenging the proposed merger between Warner Bros. Discovery, Inc. (Warner Bros.) and Paramount Skydance (PSKY), despite the Trump administration’s approval of the $110 billion deal.
On February 27th, Paramount and Warner Bros. announced their definitive agreement to merge companies. Subsequently, on June 12th, the Department of Justice (DOJ) granted federal regulatory approval under President Donald Trump’s approval, according to The Guardian.
In a statement released by Bonta (D-Calif.) on Monday, 12 Democrat attorneys general (AGs) across the U.S. are challenging the $110 billion merger. The acquisition would combine Hollywood’s five major film distributers and two of five basic channel owners — marking the largest merger in Hollywood history.
The multistate Democrat-led coalition argues that the takeover would cause harm for movie theaters, basic cable distributors and audiences across the country. If attained, Paramount would control 27% of the distribution market for films that appear on screens across America, 30% of blockbuster film distribution and 27% of the market for basic cable channels, the indictment notes.
“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.,” Banta said in the joint statement.
“California’s film and entertainment industry touches the lives of Americans daily — it comes into the living rooms of families, has a starring role in many young people’s first dates, and is a point of immense pride and employment for Californians up and down our state,” the attorney general continued.
“Consolidation here not only leads to higher prices — it also leads to fewer opportunities for important stories to come to life, and fewer ways for audiences to encounter stories, ideas, and perspectives beyond their own experiences.”
Paramount, however, maintains that the deal will increase content output by eliminating $6 billion in overlapping infrastructure, marketing and corporate roles, adding that CEO David Ellison has committed to a release schedule of 30 movies per year for the combined studios, Reuters reported.
Nonetheless, the parties have agreed not to close the deal until the judicial process concludes. Otherwise, the coalition will seek a temporary restraining order to prevent the transaction from closing.
Paramount’s distribution legacy spans classics like “Titanic” and “The Godfather” to other massive franchises like “Top Gun” and “Transformers.” Similarly, Warner Bros. boasts cinematic giants like “Casablanca,” “The Matrix” and “Barbie,” alongside “cultural phenomena” like “Batman” and “Harry Potter.” Beyond film, Warner Bro.’s collective television footprint dominates American media, controlling premium content and networks including March Madness, MLB, CNN, MTV and Nickelodeon.
The lawsuit, filed in the U.S. District Court for the Northern District of California, ultimately argues that the merger violates Section 7 of the Clayton Act by threatening to substantially lessen competition and create a monopoly.
Bonta is leading the coalition of AGs from 11 other states — Arizona, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon and Washington — in filing the lawsuit.
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