Twelve U.S. states, led by California, have filed a federal lawsuit to block Paramount's planned $110 billion acquisition of Warner Bros. Discovery, citing concerns over monopoly and consumer impact.
California, along with eleven other states—New York, Arizona, Minnesota, Oregon, Colorado, Connecticut, Massachusetts, Nevada, New Jersey, New Mexico, and Washington—filed a lawsuit in federal court in Oakland seeking to halt the $110 billion merger between Paramount and Warner Bros. Discovery, equivalent to about 4 trillion baht.
If completed, this deal would be one of the largest mergers in media history and would position Paramount as a major competitor to Netflix and Disney.
The lawsuit states that the merger would create a company with dominant control over the media market, enabling it to set prices for movies and television shows, which would increase costs for movie theaters, subscription TV providers, and consumers.
Attorneys general from several states also warn that reduced competition could weaken wages for entertainment industry workers such as actors, screenwriters, production crews, and behind-the-scenes staff.
If the merger proceeds, Paramount would hold about 27% of the U.S. film distribution market and control roughly 30% of blockbuster films, along with major cable channels like CNN, MTV, HGTV, Cartoon Network, and Nickelodeon.
Paramount responded with a statement claiming the lawsuit misinterprets antitrust laws and does not reflect the true competitive landscape of today’s entertainment industry.
The company said the merger would reduce redundant costs by more than $6 billion and enable it to produce more films, aiming to release up to 30 movies annually.
However, the suing states argue that these commitments are not legally binding and that even with increased film production, the company could still raise prices and lower service quality post-merger.
The case has also drawn political attention, with some critics noting that the U.S. Department of Justice may have approved the deal more easily due to Larry Ellison, Oracle co-founder and father of Paramount CEO David Ellison, having close ties to former President Donald Trump.
Meanwhile, all twelve states' attorneys general filing the suit are Democrats, stating that their actions aim to protect consumers, small businesses, and the film industries within their states.
Analysts view this lawsuit as the most significant obstacle to the deal and expect it to cause several months of delay in the process.
According to the agreement terms, if the merger is not completed before October, Paramount must pay Warner Bros. Discovery shareholders approximately $650 million per quarter in compensation. Additionally, delays could affect financing, stock prices, and might ultimately cause the deal to fail.
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