A coalition of 12 state attorneys general sued to block Paramount Skydance’s proposed acquisition of Warner Bros. Discovery, alleging the tie-up would violate the Clayton Act by harming competition in theatrical distribution and cable channel licensing. The suit came after the U.S. Department of Justice declined to challenge the deal, making the states’ suit the principal legal obstacle to the roughly $111B deal.
LATEST DEVELOPMENT · SEP 11, 2026
On September 11, 2026, the federal court ordered Paramount Skydance and the state attorneys general coalition to schedule dates in late October for renewed settlement negotiations, after California Attorney General Rob Bonta had canceled a planned late-August settlement meeting citing bad faith and leaks. Separately, Iowa and Montana’s Republican attorneys general asked the U.S. Supreme Court to block or expedite review of the Democratic-led states’ antitrust suit, calling it politicized.
BACKGROUND
A coalition of twelve Democratic state attorneys general, led by California’s Rob Bonta, sued in July 2026 to block Paramount Skydance’s roughly $110B acquisition of Warner Bros. Discovery. The states argue the combination would concentrate too much control over theatrical film distribution and cable and streaming channel licensing in one company’s hands, violating the Clayton Act. The suit is unusual because it followed a decision by the U.S. Department of Justice not to challenge the merger, leaving the states as the main legal obstacle standing between the companies and a closed deal.
Paramount responded by building out a heavyweight antitrust defense team anchored by Jeffrey Kessler of Winston & Strawn, who has previously represented plaintiffs in high-profile antitrust wins against the NCAA and Live Nation, alongside former DOJ antitrust officials. The company has publicly dismissed the states’ case as a weak and politically motivated challenge, while continuing to rely on Latham & Watkins and Cravath, Swaine & Moore for the underlying transaction work.
Procedurally, Judge Araceli Martínez-Olguín granted a temporary restraining order blocking closing shortly after the case was filed, and Paramount agreed to push back its intended closing date to June 2027 to allow the litigation to play out. A March 2027 trial date has been set for the consolidated antitrust claims. The case has also become entangled in partisan politics, with Republican attorneys general from Iowa and Montana asking the U.S. Supreme Court to intervene and either block or expedite review of what they call a politicized suit brought by Democratic state officials.
Settlement talks between the states and Paramount broke down in late August 2026 after California’s attorney general canceled a planned meeting, citing bad faith and leaks to the press. The court has since ordered both sides back to the table for renewed negotiations in late October 2026, while the underlying antitrust claims and the Supreme Court intervention bid remain unresolved.
TIMELINE
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SEP 24, 2026HEARINGHearing set on Paramount’s $1.88B bond requestJudge Araceli Martínez-Olguín scheduled a September 24, 2026 hearing on Paramount’s motion, filed August 17 and opposed by the states and the Writers Guild of America on August 31, to require the plaintiff states and WGA to post a $1.88B bond covering potential ticking-fee losses while the merger remains paused.
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SEP 11, 2026FILINGParamount Skydance files answer to states’ antitrust complaintParamount Skydance filed its formal answer to the 12 states’ antitrust lawsuit, arguing the merger would enhance competition against Netflix, Disney and Amazon and noting that 68 jurisdictions had already approved the deal.
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SEP 11, 2026PROCEDURALCourt orders Paramount and state AGs to schedule late-October settlement talksA federal court issued a brief order directing Paramount Skydance and the state attorneys general challenging its takeover of Warner Bros. Discovery to find dates in late October to negotiate a possible settlement of the states’ antitrust suit.
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AUG 26, 2026FILINGIowa and Montana ask Supreme Court to block or expedite review of the states’ antitrust suitRepublican attorneys general of Iowa and Montana filed a motion asking the U.S. Supreme Court to intervene against the Democratic-led coalition’s antitrust suit. The Court directed the California-led states to respond by September 25, 2026.
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AUG 24, 2026PROCEDURALCalifornia AG cancels planned settlement meeting with ParamountCalifornia Attorney General Rob Bonta called off a scheduled meeting with Paramount Skydance to discuss a potential settlement of the states’ antitrust suit, citing a lack of good faith and accusing Paramount of leaking details of the confidential talks.
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AUG 4, 2026PROCEDURALJudge sets March 2027 trial date for consolidated antitrust casesU.S. District Judge Araceli Martínez-Olguín issued a scheduling order consolidating the states’ lawsuit and the Writers Guild of America’s suit for a single 12-day trial running March 2 to March 19, 2027, with a final pretrial conference set for February 24, 2027.
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JUL 24, 2026PROCEDURALParamount Skydance agrees to delay merger closing until June 2027In a joint court filing, Paramount Skydance agreed not to close the Warner Bros. Discovery acquisition until June 1, 2027 or a ruling on the states’ antitrust claims, whichever comes first, and the parties canceled the August 3 preliminary-injunction hearing in favor of a full trial.
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JUL 20, 2026PROCEDURALJudge Martínez-Olguín grants a 14-day temporary restraining order against closingThe court barred the parties from closing or integrating, finding the states presented compelling evidence of a presumptively unlawful market share in wide-release theatrical distribution. The order was later extended by 14 days.
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JUL 13, 2026FILINGTwelve states led by California sue to block the Paramount Skydance acquisition of Warner Bros. DiscoveryThe complaint in the Northern District of California invokes Clayton Act Section 7, weeks after the DOJ cleared the roughly $111B deal.