Writers Guild escalates legal fight against Paramount-Warner Bros merger
Writers Guild files antitrust lawsuit against Paramount merger, intensifying labor's legal opposition.
Event / Economy
Proposed $111 billion merger between Paramount and Warner Bros. Discovery, including related industry responses and controversies
2026-08-10 to 2026-11-07 · UTC publication dates
Coverage begins 14 Jul, 00:22 UTC
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New York City Mayor Zohran Mamdani and Cinema United voiced support for the state attorneys general's legal effort to block the Paramount-Warner Bros. Discovery merger, with Mamdani stating the merger does not serve the public.
David Ellison attended a dinner hosted by House Committee on Ways and Means chair Rep. Jason Smith (R-Mo.) on Monday evening to continue negotiations for a federal film tax incentive. The bipartisan gathering featured 13 Democratic and Republican representatives from the committee. Paramount's chief legal officer Makan Delrahim also attended.
Twelve state attorneys general, led by California Attorney General Rob Bonta, filed an antitrust lawsuit on Monday to block the proposed $110 billion merger between Paramount and Warner Bros. Discovery. The lawsuit argued the merger would create an entertainment giant with increased leverage over movie theaters, cable, and streaming platforms. Arizona, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon, and Washington joined the lawsuit.
Paramount Skydance CEO David Ellison has been backing a proposed federal film tax incentive bill with support from lawmakers on both sides of the aisle. Ellison has spent at least six months in exploratory meetings for the proposed legislation.
A Paramount spokesperson responded to the antitrust lawsuit by stating the company would vigorously defend the transaction and demonstrate the challenge is inconsistent with sound competition policy. The spokesperson argued that delaying the transaction would harm entertainment workers and cost California tens of thousands of entertainment jobs.
Oregon Attorney General Dan Rayfield withdrew a motion requesting a 60-day delay to the merger after Paramount declined to comply with the state's investigative demand for the media giant's records. Rayfield stated that Paramount made clear they believed they were above the law.
The state attorneys general contend that the combined entertainment giant would have increased leverage over movie theaters, cable and streaming platforms, potentially allowing Paramount to raise prices, reduce content output, and make it harder for other studios to reach audiences. The coalition argues this would result in fewer viewing options, higher prices, lower quality content, and less competition across film, television, and streaming services.
A coalition of 12 state attorneys general, led by California Attorney General Rob Bonta, filed a lawsuit on Monday to block the proposed $110-111 billion merger between Paramount Skydance and Warner Bros. Discovery. The states involved are Arizona, California, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon, and Washington. The states argue the merger violates the Clayton Act and would harm competition in the entertainment and media industries.
The European Commission extended its Phase 1 investigation of the Paramount-Warner Bros. merger from July 7, after Paramount submitted concessions to address regulatory concerns. The EC has set July 22 as the deadline to decide whether to clear the merger or refer it for a more in-depth Phase 2 investigation. Remedies discussed included Paramount withdrawing from United International Pictures, an international film distribution joint venture with Universal.
Warner Bros. shareholders approved the merger with Paramount Skydance, clearing one of the regulatory hurdles for the transaction to proceed.
Paramount and Warner Bros. Discovery agreed not to close the merger prior to July 22, when the European Commission will make its decision. The companies have set a target closure date by the end of the third quarter. If the transaction does not close by September 30, WBD shareholders will receive a 25 cent per share quarterly 'ticking fee.' If the deal fails due to regulatory matters, Paramount will pay WBD a $7 billion termination fee.
U.K. Secretary of Culture, Media and Sport Lisa Nandy informed Paramount and Warner Bros. Discovery that she is 'minded to intervene' in the merger. The U.K. Competition Markets Authority is set to decide whether to clear the merger or launch a Phase 2 investigation by August 7.
The merger has received clearance or seen relevant waiting periods expire in Australia, Austria, Canada, China, Kuwait, Saudi Arabia, Serbia, South Africa, Ukraine, Montenegro, New Zealand, and North Macedonia. Foreign direct investment authorities in Spain, Germany, Slovenia, Belgium, Czechia, Italy, France, and Romania have also approved the transaction.
The U.S. Department of Justice approved the Paramount-Warner Bros. merger last month prior to the states filing their lawsuit. The DOJ conducted an eight-month investigation during which state attorneys general participated, sharing information with the agency and attending related depositions.
Paramount Skydance has committed to releasing 30 films per year in theaters through the combined business with Warner Bros., saying this would support job growth in the film industry.
If combined, Paramount and Warner Bros. would control nearly one-third of cable programming and nearly one-third of the U.S. motion picture industry, according to California Attorney General Rob Bonta's office. The merger would combine Paramount Pictures, Paramount+ streaming service, CBS broadcast network, cable channels including MTV, Comedy Central, and Nickelodeon with Warner Bros. Studio, HBO, HBO Max, CNN, TBS, and TNT.
A coalition of 12 state attorneys general, led by California Attorney General Rob Bonta, filed a lawsuit on July 13 in U.S. District Court for the Northern District of California to block Paramount Skydance's acquisition of Warner Bros. Discovery. The states joining the lawsuit are Arizona, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon, and Washington. The states argue the merger violates the Clayton Antitrust Act and would harm competition, drive up costs for consumers, reduce film production, and harm movie theaters and cable distributors.
In April 2026, five streaming customers filed an antitrust lawsuit against the Paramount-Warner Bros. merger in federal court in California. The case is ongoing, with Paramount's attorneys arguing the customers do not have standing.
The U.S. Department of Justice's antitrust division cleared the $110 billion Paramount Skydance acquisition of Warner Bros. Discovery to proceed in June 2026, determining the transaction was "not likely to result in harm to competition or American consumers" in streaming, pay TV, or movie production and distribution.
Movie producer David Ellison's Skydance Media acquired Paramount Global after receiving financial backing from his father Larry Ellison, billionaire Oracle co-founder. The Ellisons then prevailed over Netflix in February 2026 in a bidding war for Warner Bros. after the company's board announced that Paramount Skydance's offer, involving $40 billion in personal financing from Larry Ellison, was superior to Netflix's proposal.
Writers Guild files antitrust lawsuit against Paramount merger, intensifying labor's legal opposition.
U.S. court blocks merger while EU and 65 other jurisdictions approve it, creating transatlantic regulatory split.
Paramount shareholders sue Ellisons alleging undisclosed Trump-related side dealings during merger negotiations.
Writers Guild and state attorneys general file lawsuits to block Paramount-Warner Bros merger.
Paramount's Ellison lobbies Congress for federal film tax incentives via bipartisan committee engagement.
State attorneys general, NYC Mayor, and Cinema United escalate antitrust opposition to the Paramount-Warner Bros. merger.
Paramount shareholders approved the merger with global regulators clearing waiting periods ahead of Q3 2026 closing.
Regulators in the U.S., EU, and U.K. are escalating antitrust challenges to the merger despite DOJ approval.
Paramount ties shareholder payments to merger completion and pledges 30 annual films.
5,000+ Hollywood workers oppose merger via open letter as legal challenges mount.
States sue to block approved merger as regulators diverge on market concentration concerns.