The fight to stop a Hollywood megamerger is far from over

Key Points:

• The $110 billion merger between Paramount Skydance and Warner Bros. Discovery received approval from the U.S. Justice Department but remains under investigation by California Attorney General Rob Bonta and New York Attorney General Letitia James, who may pursue antitrust lawsuits to block the deal.
• The merger would consolidate two major Hollywood studios, streaming platforms, and news organizations under CEO David Ellison, raising concerns among industry professionals about reduced competition, job losses, and higher consumer costs; over 5,500 entertainment figures have publicly opposed the deal.
• Paramount argues the merger will enhance competition against tech giants and increase movie production, while legal experts note that state attorneys general can delay or challenge the merger through litigation and regulatory reviews despite federal approval.
• The deal also faces scrutiny from European and UK regulators over its financial backing, and Paramount faces financial penalties if the merger is not completed by September 30, adding urgency to finalizing the transaction.
• California and New York have a recent track record of independently challenging major media mergers, reflecting a broader trend of state-level antitrust enforcement filling gaps left by federal regulators.