US states preparing lawsuit to block Paramount-Warner Bros deal

California, New York, and other U.S. states are preparing to file a lawsuit to block Paramount Skydance's $110 billion acquisition of Warner Bros, according to sources familiar with the matter. The lawsuit is expected to be filed in the coming weeks and represents a significant escalation in the states' efforts to lead U.S. antitrust enforcement. California Attorney General Rob Bonta has been a vocal critic of the deal, citing concerns about potential antitrust violations, reduced competition, job losses, and lower wages within the entertainment industry. Paramount maintains that the acquisition will foster greater competition, benefit consumers and creators, and lead to a minimum of 30 theatrical film releases annually. The company argues that opposing the deal would unfairly advantage entrenched competitors like Netflix. The U.S. Department of Justice is also expected to make a decision on the deal soon, having issued subpoenas in late March to gather information on the merger's potential impact on studio output, content rights, streaming competition, and movie theaters. The potential lawsuit could delay the consummation of the deal by months if a judge issues an order pausing the merger while the case proceeds. Paramount has agreed to pay shareholders a daily fee starting in October if the deal has not closed by then.