Key facts
- Multiple U.S. states are preparing a lawsuit to block the Paramount Skydance acquisition of Warner Bros.
- The deal is valued at approximately $110 billion.
- California and New York are among the states preparing the lawsuit.
- The lawsuit would represent a significant antitrust enforcement action by the states.
- Warner Bros shares fell 1.9% and Paramount shares fell 7% on the news.
A group of U.S. states, including California and New York, is reportedly preparing to file a lawsuit aimed at blocking Paramount Skydance's $110 billion acquisition of Warner Bros. This legal action would represent a significant move by states in their efforts to lead U.S. antitrust enforcement, contrasting with a more business-friendly view from federal agencies. Paramount CEO David Ellison's father, Larry Ellison, has cultivated ties with President Donald Trump, which analysts suggest may ease federal regulatory clearance. The proposed transaction has faced pushback from Hollywood professionals concerned about potential job eliminations. Paramount denies that the deal will lead to a decrease in creative jobs, stating it will necessitate more content creation. Shares of Warner Bros fell by 1.9%, and Paramount shares extended their losses, dropping by 7% following the news. California Attorney General Rob Bonta's office stated that its investigation remains active but declined to comment further.