Paramount Skydance has harshly criticized a coalition of 12 Democratic state attorneys general led by David Ellison who filed a lawsuit seeking to block the acquisition of Warner Bros. Discovery.
After filing the lawsuit, Paramount said Monday that the suit brought by the state auditor’s office “distorts settled antitrust law and is based on misrepresentations of competition in today’s entertainment industry.” The company, which was formed when Skydance Media acquired Paramount Global in August 2025, said it “strongly defends this transaction.”
The company reiterated its claim that the $111 billion merger deal between Paramount and Warner Bros. “creates a strong competitor to the dominant streaming and technology platforms that have negatively impacted the theatrical release market and entertainment industry jobs.”
“The lawsuit filed by the state attorney general reflects a fundamentally flawed application of antitrust law, even from the most liberal perspective, and is wrong on both fact and law,” Paramount said in a statement. “Delaying this deal will only harm entertainment workers, who have already suffered in recent years as technology has destroyed their livelihoods and cost California tens of thousands of entertainment jobs.”
The company continued in a statement, “The net effect of this lawsuit is to protect dominant streaming platforms and technology companies like Netflix from much-needed competition, while blocking the significant benefits this transaction brings to consumers, creators, workers, and the broader Hollywood economy. We will continue to fight any attempts to derail a transaction that increases competition, expands opportunity, and positions the combined company to compete in an increasingly competitive global media environment.”
Paramount said its acquisition of WBD has been cleared by regulatory authorities in 24 jurisdictions. This includes a green light from the U.S. Department of Justice in mid-June that did not impose any requirements for a sale or other concessions on Paramount Skydance. The deal awaits approval from British regulators, who say they are likely to intervene.
Paramount said the deal with WBD is expected to close in the third quarter of 2026. The company has promised to pay shareholders a 25 cents per share “ticking fee” for each quarter that does not close after September 30th. This equates to approximately $650 million in cash value each quarter.
