California, New York prepare suit to block Paramount-Warner merger

State attorneys general from California to New York are preparing to challenge Paramount Skydance’s $110 billion bid for Warner Bros., turning the deal into a test of how much control one company can hold over film, television, streaming and news distribution. The threatened lawsuit would put state enforcers at the center of one of the biggest media consolidation fights in years, even as federal regulators in Washington are widely seen as more receptive to large corporate combinations.

California Attorney General Rob Bonta is expected to decide soon whether to sue, after his office reviewed the deal for possible U.S. antitrust violations. Bonta has said he generally prefers antitrust remedies backed by potential divestitures rather than broad corporate promises, a sign that any settlement would likely have to include concrete concessions. Bloomberg reported that senior officials in about 10 states have been drafting a complaint and working through filing logistics for a possible move as soon as this month, with California leading because of its central role in the entertainment industry.

The challenge lands squarely on market power. The combined company would bring together major assets in film and television production, streaming and distribution, raising questions about whether the merger would reduce consumer choice or give the new Paramount too much leverage over content pipelines. The stakes are particularly high in Hollywood, where traditional media companies are already under strain from streaming rivals, declining linear television revenue and a race to build scale. Hollywood workers and industry employees have also voiced concern that the merger could cost jobs and further weaken production in California.

The political backdrop adds another layer. Analysts have said Paramount may face a comparatively easier path with federal antitrust officials, in part because of the ties surrounding Paramount chief executive David Ellison and his father, Oracle co-founder Larry Ellison, who has cultivated a relationship with President Donald Trump. That dynamic has only sharpened the importance of the states’ effort, which would show that aggressive antitrust scrutiny can still come from state capitals even when Washington appears more open to megadeals.

The merger is already under attack on other fronts. A separate federal lawsuit filed in April by streaming subscribers argues the deal could harm competition in premium video distribution, weaken the quality of national TV news and lead to fewer theatrical films. Paramount also sought European Union antitrust approval on June 2, and the European Commission has set a provisional decision deadline of July 7. Together, the state threat, private litigation and European review make clear that Paramount’s bid for Warner Bros. is becoming a broader referendum on media concentration, not just another corporate transaction.