Twelve States File Antitrust Suit to Block Paramount-WBD Merger Amid Reports of California Exit Threat

A coalition of state attorneys general, led by California's Rob Bonta and Washington's Nick Brown, has filed an antitrust lawsuit to block the proposed $110 billion merger between Paramount Skydance and Warner Bros. Discovery. The lawsuit, expected to hit courts Monday, argues the deal would combine two of Hollywood's five major film distributors and two of the five major basic cable companies, extinguishing competition and harming theaters, distributors, and audiences, according to a release from the Washington State Attorney General's office and reporting by Deadline.

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DeadlineState AGs Prepare Antitrust Lawsuit to Block $110B Paramount-WBD MergerWashington StateAG Brown co-leads coalition challenging Warner Bros./Paramount merger

As the legal battle looms, Paramount CEO David Ellison is reportedly being urged to relocate the company's corporate headquarters out of California. According to The Hollywood Reporter, "friends and advisers" have been pushing Ellison to headquarter the company outside the Golden State, with Media Play News adding that Ellison is being encouraged to uproot both corporate and studio operations should Bonta follow through with litigation.

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The Hollywood ReporterParamount Reportedly Considering Leaving California as State Readies Lawsuit Over Warner Bros. Discovery MergerMedia Play NewsParamount Being Urged to Leave CA Should Attorney General Rob Bonta Pursue WBD Merger Litigation

"The proposed merger would combine two of Hollywood's five major film distributors and two of the five major basic cable companies, extinguishing competition between Paramount and Warner Bros."

Deadline reported that state attorneys general have prepared the lawsuit, branding the merger a "competition killer" that would harm the production and distribution of big-budget films. The Streamable noted that Paramount's corporate headquarters have been located in California for less than a year, but that situation may not last if the company follows through on relocation threats in response to the lawsuit.

The StreamableParamount could move out of California if sued over WBD deal

"State attorneys general, led by California's Rob Bonta, are preparing to file an antitrust lawsuit to block the proposed $110 billion merger, arguing the merger would be a 'competition killer.'"

The threat to move headquarters has been characterized as a coercive tactic, with The Streamable reporting that Paramount Skydance has not been afraid to use behavior that may come off as coercive in its attempts to purchase Warner Bros. Discovery. Whether the company follows through on leaving California remains uncertain, but the legal and political stakes are now high for one of the biggest media mergers in Hollywood history.