A lawsuit filed by a group of Paramount+ subscribers on Thursday urged a federal judge to block Paramount Skydance’s $110 billion deal to acquire Warner Bros Discovery on antitrust grounds, marking the first legal push to halt the deal that follows other opposition to the merger, including petitions by prominent Hollywood figures and warnings from California state officials.
The lawsuit alleges the $110 billion Paramount-Warner Bros. deal will raise prices for subscribers while impacting the quality of content.
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In a filing made before the Northern District of California federal court, the plaintiffs—a group of Paramount+ subscribers—argue the merger will “substantially lessen competition” and lead to increased prices for consumers and reduced quality, among other issues.
The suit also raises concern about Paramount gaining control of CNN, saying it reflects a “broader consolidation strategy” that would undermine competition that protects “editorial rivalry, investigative resources, and viewpoint diversity.”
The plaintiffs also argue the ownership of CNN was treated as a “matter of political leverage” and therefore shows the sale was driven “by political considerations and horse trading over a major national news outlet.”
The suit also alleges that Skydance’s acquisition of Paramount last year was approved on the “explicit condition” that the company needed to “align CBS News’s editorial posture with the Trump Administration.”
The plaintiffs urge the court to block the Warner Bros. deal and also force Skydance to unwind its acquisition of Paramount.
While the subscriber-driven antitrust suit is likely a long shot, it could be one of many challenges that Paramount Skydance may have to overcome to complete the acquisition. In February, when both Netflix and Paramount were in the race to acquire Warner Bros., California Attorney General Rob Bonta issued a statement: “The proposed Warner Brothers transactions must receive a full and robust review, and California is taking a very close look. We are committed to fighting market consolidation that we find unlawful.” Once Paramount Skydance emerged as the winner of the bidding war, Bonta warned that it was not a “done deal” and added: “These two Hollywood titans have not cleared regulatory scrutiny — the California Department of Justice has an open investigation, and we intend to be vigorous in our review.” In March, Bonta told Deadline that his office has an open and ongoing investigation into the planned merger, saying: “Whenever there’s major corporate consolidation like this, there’s a concern that we might see increased prices, lower wages, reduction in competition, limits in choice, lower quality, all those things. That’s why there is antitrust law in the first place.” It's unclear if any other states will join California if it chooses to file a lawsuit to block the merger.
The planned merger has also drawn pushback from top figures in Hollywood, including star actors and big-name directors. Over 4,000 people have signed a petition expressing opposition to the deal, including the likes of Robert De Niro, Joaquin Phoenix, Pedro Pascal, Mark Ruffalo, David Fincher, Denis Villeneuve and others. The petition notes: “We are deeply concerned by indications of support for this merger that prioritize the interests of a small group of powerful stakeholders over the broader public good. The integrity, independence, and diversity of our industry would be grievously compromised.”
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