- California AG Bonta is leading a multistate coalition of 12 AGs in filing a lawsuit challenging the $110 billion acquisition of Warner Bros. Discovery, Inc. (Warner Bros.) by Paramount Skydance Corporation (Paramount).
- The lawsuit alleges that the merger violates Section 7 of the Clayton Act, which holds that mergers that may substantially lessen competition or tend to create a monopoly are illegal. The AGs allege that if Warner Bros. and Paramount were allowed to merge, it would lessen competition in the areas of wide release theatrical film distribution, anticipated top-grossing theatrical film distribution, and licensing basic television channels.
- The coalition is asking Warner Bros. and Paramount not to close the merger until after the judicial process concludes. If the companies do not agree, the coalition will be filing a temporary restraining order. If merged, the combined company reportedly would control nearly one-third of theatrical motion pictures and nearly one third of basic cable programming.