The states argue the merger would reduce competition, lead to fewer jobs in the entertainment industry, increase cable and movie ticket prices, and leave consumers with fewer choices for news and entertainment. They are asking the court to stop the merger until the legal case is resolved.
The lawsuit comes just weeks after the U.S. Department of Justice cleared the transaction, saying it was not expected to harm competition or American consumers. Paramount Skydance has argued the merger would create a stronger company and allow it to produce more movies while creating additional jobs.
If completed, the deal would combine Paramount’s movie studios and television networks with Warner Bros. Discovery’s major entertainment brands, including HBO Max, CNN, TNT and the Harry Potter franchise, creating one of the world’s largest media companies.
Despite receiving regulatory approvals from several countries, the merger still faces reviews in Europe and the United Kingdom. The new lawsuit could delay or even block one of the biggest media deals in history.