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Led by California, the coalition alleges that allowing the merger to close would lead to higher prices, lower competition, and a worse landscape for consumers. The bean counters at Paramount Skydance may have to get their adding machines back out. The company has pledged to pay out a “ticking fee” to Warner Bros. Discovery shareholders if Paramount’s deal to buy that firm isn’t closed by the end of September, and a major new setback to concluding the deal on time has cropped up. Several states, led by California Attorney General Rob Bonta, have filed a lawsuit to stop the merger from being consummated. Key Details: See you in court: A group of 12 states has sued to stop the merger of Paramount and WBD. No fair: The lawsuit alleges that a combined Paramount and WBD would be damaging to consumers. Not backing down: Paramount pledged to “vigorously defend the transaction” in court. Sign Up $8.99+ / month paramountplus.com Bonta has assembled a coalition of 12 states, including his own, to compel the courts to stop the merger of Paramount and Warner Bros. Discovery over antitrust concerns. Filed in the U.S. District Court for the Northern District of California, the case is also brought forth by attorneys general from Arizona, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon, and Washington. Merging Paramount and WBD would combine two of the longest-tenured film studios in Hollywood and create the largest portfolio of TV networks in the United States. It would also bring two of the biggest streaming services on the market — HBO Max and Paramount+ — together as one. Advocacy groups representing movie theater chains and unions for Hollywood workers are opposed to the deal, which they claim will lead to fewer jobs, fewer movies, and a worse media ecosystem overall. Clearly, Bonta and the other attorneys general bringing the suit agree. “The unlawful merger of these two entertainment behemoths would lead to higher prices, lower quality, and less content for film and television, harming movie theaters, basic cable distributors, and ultimately, audiences on every sofa and movie theater seat in the U.S.,” Bonta said in a press release. Paramount, of course, pushed back vehemently against the suit in a statement of its own. It promised to defend the deal to the furthest extent in court, and that holding it back would only create the kind of pain which state officials say they’re trying to head off by quashing the deal. “Delaying this transaction will only harm entertainment workers who have already suffered over recent years as technology has disrupted their livelihood and cost California tens of thousands of entertainment jobs,” Paramount said. The coming lawsuit wasn’t much of a secret, as outlets began reporting last week that such a move was coming from state AGs. The Department of Justice has already approved the merger, but state officials still have the power to challenge it in court. The lawsuit could create consequences for both sides that have nothing to do with the eventual verdict in the case. For Paramount, it could mean that the $0.25-per-share ticking fee it pledged to WBD shareholders if the deal didn’t close in a timely fashion will kick in, and that translates to around $650 million per quarter in cash value. California, on the other hand, may see Paramount's corporate headquarters move out of state now that the lawsuit has been filed, depriving it of future material investments. The attorneys general have asked WBD and Paramount not to close the merger until the judicial process plays out. If they do not comply, the plaintiffs say they will ask for a temporary restraining order. Keep an eye on The Streamable for updates in the case, which is sure to be one of the most consequential stories in streaming over the second half of 2026. Sign Up paramountplus.com Paramount Plus Paramount+ is a subscription video streaming service that includes on-demand access to 40,000+ TV show episodes from BET, CBS, Comedy Central, MTV, Nickelodeon, Nick Jr., and more. Get free access with a Walmart+ subscription. Paramount+ includes “1883,” “Tulsa King,” “Star Trek: Discovery,” “SpongeBob SquarePants,” and “PAW Patrol.” Subscribers can watch the NFL, college football, The Masters, college basketball, UEFA Champions League, UEFA Europa, Serie A, and NWSL. The service also offers the option to watch your live CBS affiliate. The upgraded ad-free package includes premium movies and shows from Showtime. Sign Up $8.99+ / month paramountplus.com

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