Overview
- A coalition of 12 state attorneys general, led by California Attorney General Rob Bonta, filed a federal Clayton Act lawsuit on Monday to stop the proposed $110–$111 billion deal and asked the court to pause closing or grant a temporary restraining order if Paramount proceeds.
- The states argue the combined company would control roughly 27% of wide-release theatrical distribution and about 27% of basic cable programming, which they say would raise prices, reduce film output and weaken theaters’ bargaining power.
- The lawsuit directly conflicts with the Department of Justice Antitrust Division’s June decision to clear the merger after an eight-month review, creating parallel legal and regulatory tracks that will determine whether the deal can close.
- Paramount calls the suit legally flawed and says the merger will boost its ability to compete with streaming rivals while pledging to release about 30 films a year; the company is preparing a courtroom defense as ticking fees and a multibillion-dollar termination fee add commercial pressure to close by Sept. 30.
- The case deepens political and industry tensions: thousands of creatives and labor groups oppose the deal, foreign regulators and the FCC continue separate reviews, and a court fight could delay closing for months with concrete effects on jobs, theaters and cable licensing.