A coalition of 12 state attorneys general filed suit Monday to block the $110 billion Paramount-Skydance merger, arguing the deal would consolidate media power in ways that harm consumers and workers.
The lawsuit, filed in U.S. District Court for the Northern District of California and led by California Attorney General Rob Bonta, challenges a transaction that received federal approval weeks earlier. Arizona, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon and Washington are asking the court to halt the merger pending judicial review.
The states' complaint centers on antitrust concerns: the consolidation would reduce competition in streaming and cable distribution, likely raising consumer prices while squeezing out smaller distributors and independent content creators.
The Department of Justice approved the merger in May after what observers viewed as a swift review, despite opposition from labor unions, journalists' organizations and entertainment workers. The DOJ's approval paved the way for regulators in other jurisdictions to follow suit.
Bonta raised concerns about the decision-making process. "Antitrust enforcement is a check on billionaires currying favor with the president so he'll do their bidding," he told reporters. David Ellison, who would control Paramount Skydance, is the son of Oracle billionaire Larry Ellison, a figure with documented ties to the Trump administration and its inner circle.
Paramount and Skydance countered that the lawsuit represents a "fundamentally flawed application of antitrust laws." The companies said the merger will preserve theatrical distribution and argued that blocking the deal would harm entertainment workers.
Paramount Skydance has until Sept. 30 to close the deal before triggering "ticking fees" that will add $0.25 per share per quarter to the purchase price, creating pressure to move quickly.
International regulators have proven more cautious. The U.K.'s Culture Secretary, Lisa Nandy, signaled in late June that she was "minded" to intervene and requested a deeper investigation from Ofcom and the Competition and Markets Authority. The contrast between U.S. federal approval and U.K. hesitation reflects broader differences: American antitrust enforcement in media and tech has been more permissive in recent years, while U.K. and European regulators have maintained stricter scrutiny of consolidation.
Bonta also raised concerns about the merger's impact on journalism. "This merger will mean fewer journalists informing the electorate," he said. "It will mean fewer opportunities for Americans to hear the full breadth of information and opinions on a subject." CBS News and CNN, whose parent companies would merge in the transaction, employ hundreds of reporters and editors.
Media consolidation has measurable effects on local reporting, news diversity and the ability of outlets to cover powerful interests, including the companies that own them.
The states filing suit are essentially arguing that the regulatory process failed. Whether they succeed will depend on a judge's interpretation of antitrust law and market dynamics. The lawsuit will take months to develop, and Paramount will spend considerable legal resources defending the transaction. Meanwhile, the company's ticking fee creates constant pressure to accelerate the closing.
