Paramount-Warner Lawsuit: 12 US States Take the Matter to Court

Through the merger, Paramount would, among other things, acquire the streaming service HBO Max, the "Harry Potter" film franchise, the DC Universe with brands such as Superman and Batman, as well as the news channel CNN. The entertainment conglomerate includes, among other things, the DC superhero universe with Superman and Batman, film franchises such as «Harry Potter», and a strong streaming business built on the pay-TV channel HBO.

In their lawsuit, the twelve US states argue that the elimination of competition between Warner and Paramount will hit cinemas hard, among other effects. The merger would also lead to higher prices and fewer productions. The plaintiffs also warn of consequences for the film industry and cinemas, as the loss of a major competitor could weaken competition in film production and exploitation.

California Attorney General Rob Bonta is leading the case. "In the view of the plaintiffs, the merger would significantly restrict competition in Hollywood and lead to higher prices, less content, and poorer quality for viewers," California Attorney General Rob Bonta said. The states are demanding that Paramount and Warner Bros. suspend the closing of the transaction until the end of the proceedings. Otherwise, they intend to seek a preliminary injunction.

Political dimension and criticism

Paramount rejected the allegations. The lawsuit is based on a flawed application of antitrust law and misreads the competitive realities of the entertainment industry, the company said. The company announced that it intends to resolutely push ahead with closing the deal.

Behind Paramount stands the family of software billionaire Larry Ellison, a supporter of President Donald Trump. His son David Ellison leads the conglomerate. The film producer aims to gain weight in Hollywood through the takeover of Warner Bros. Discovery. The agreement between Paramount and Warner Bros. Discovery was reached at the end of February, after Netflix withdrew from the bidding war. Originally, Netflix had agreed with Warner the previous year on a purchase of the streaming and studio business of the industry heavyweight. But Paramount did not give up and submitted a higher bid for the entire Warner Bros. Discovery conglomerate, including television channels such as CNN. Paramount prevailed with a higher offer for the entire company. Shareholders approved the takeover in April.

The US government under Donald Trump approved the takeover of Warner by the smaller competitor Paramount without conditions. The US government had approved the takeover in June following an eight-month review, without conditions. According to the "Wall Street Journal", the takeover was waved through by the department's leadership before the agency's responsible attorneys could issue a recommendation. At the same time, competition reviews outside the US are still ongoing, including in Europe.

Resistance from the film industry

Trump had repeatedly shown interest in CNN changing hands as part of a Warner sale. Trump had said several times that it was particularly important to him that the news channel, which often reports critically about him, also change ownership as part of a Warner deal. Trump critics in the US fear that CNN could lose its editorial independence under the Paramount umbrella.

The newsroom of Paramount's CBS channel attracted attention after the Ellison family's takeover in 2025 for friendlier coverage of Trump's administration. On the popular newsmagazine "60 Minutes", several correspondents were dismissed, some of whom complained about politicized pressure.

Resistance is also coming from within the film industry itself. Now more than 1,000 film professionals are warning of consequences such as fewer jobs and higher costs. Actress Jane Fonda, the former wife of the late CNN founder Ted Turner, launched a petition during a counter-event to Donald Trump's birthday to prevent the merger and called on citizens to urge their state attorneys general to block the Paramount-Warner Brothers merger. She described the deal as "a direct attack on freedom of speech and freedom of expression".

If the deal goes through, Warner chief David Zaslav stands to receive a severance package of between $550 million and $887 million. Investors initially reacted calmly to the lawsuit; Warner shares rose after news of the states' move became known. Warner shares were up by a good 2 percent following the states' move. If the closing does not take place by October, approximately $650 million per quarter will become due to Warner shareholders.