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Twelve states sue to block $111 billion Paramount-WBD merger

$111 billion is the stated value of the Paramount Skydance and Warner Bros. Discovery combination that a 12-state coalition moved to block in court today. The Trump administration approved the deal last month. California is leading the…

By Sabrina Volkov·Aug 17, 2026·1 min read·regulatory·NFLX

Key takeaways

  • A coalition of 12 states filed suit in federal court to block the $111 billion merger of Paramount Skydance and Warner Bros. Discovery.
  • The Trump administration approved the deal last month, and California is leading the multistate lawsuit against both companies.
  • California Attorney General Rob Bonta argues the merger would raise prices, reduce the volume and quality of film and television content, and harm movie theaters, cable distributors, and viewers.
  • The deal would combine two of Hollywood's largest studios and merge their streaming services, Paramount+ and HBO Max.
  • Paramount's hostile takeover bid, backed by the Trump administration, displaced a competing deal in which Netflix had agreed to buy Warner Bros. Discovery's streaming and movie studio assets.

$111 billion is the stated value of the Paramount Skydance and Warner Bros. Discovery combination that a 12-state coalition moved to block in court today. The Trump administration approved the deal last month. California is leading the suit against both companies.

California Attorney General Rob Bonta said the merger of "these two entertainment behemoths" would raise prices, shrink the volume of film and television content, and reduce quality across the market. Movie theaters, basic cable distributors, and viewers nationwide would absorb those costs, Bonta said.

The transaction would combine two of Hollywood's largest studios and merge their streaming services, Paramount+ and HBO Max. The deal displaced a competing transaction: Netflix had previously agreed to buy Warner Bros. Discovery's streaming and movie studio assets, but Paramount's hostile takeover bid prevailed with backing from the Trump administration. Twelve state attorneys general are now asking a federal court to reach a different antitrust conclusion than the one regulators reached last month.

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Frequently asked

Which states are suing and who is leading the case?

A coalition of 12 state attorneys general filed the suit, with California, led by Attorney General Rob Bonta, heading the effort.

How much is the Paramount-Warner Bros. Discovery merger worth?

The combination of Paramount Skydance and Warner Bros. Discovery has a stated value of $111 billion.

What harms do the states say the merger would cause?

They argue it would raise prices, shrink the volume of film and television content, and reduce quality, with costs absorbed by movie theaters, basic cable distributors, and viewers nationwide.

What happened to Netflix's bid for Warner Bros. Discovery?

Netflix had previously agreed to buy Warner Bros. Discovery's streaming and movie studio assets, but Paramount's hostile takeover bid prevailed with backing from the Trump administration.

Did regulators already approve the deal?

Yes, the Trump administration approved the deal last month, and the 12 attorneys general are now asking a federal court to reach a different antitrust conclusion.