Earlier, we covered the Warner Bros. Discovery and Paramount merger. At the time, Warner Bros. Discovery shareholders had approved the sale. But the companies had not completed it.
The deal is now under a threat. Two federal lawsuits filed on consecutive days are seeking to stop Paramount Skydance from buying Warner Bros. Discovery.
One case comes from 12 US states. The other was filed by the Writers Guild of America.
Twelve states say viewers could face higher prices
These states filed the first lawsuit on July 13, 2026.
The coalition includes:
- Arizona
- Colorado
- Connecticut
- Massachusetts
- Minnesota
- Nevada
- New Jersey
- New Mexico
- New York
- Oregon
- Washington.
They argue that combining Paramount and Warner Bros. would reduce competition in three areas:
- Distribution of movies receiving wide theatrical releases
- Distribution of expected blockbuster movies
- Licensing of basic cable channels to television providers
According to the complaint, the combined company would control around 27% of the US market for widely released films, more than 30% of expected blockbuster films and around 27% of basic cable programming.
Those figures have not been proven in court. They form part of the states’ argument for why the merger should be blocked.
The states say movie theaters currently benefit from Paramount and Warner Bros. competing for screens and release dates. Removing that competition could give the combined company more power when negotiating ticket revenue and other terms with theaters.
The Writers Guild is making a different antitrust case
This organization filed a separate lawsuit on July 14.
Their argument focuses on the people who create films and television programmes rather than the companies that distribute them.
The WGA says Paramount and Warner Bros. currently compete to hire writers and purchase their work. Combining the studios would remove one of the largest buyers from an already concentrated market.
Its complaint identifies three areas where writers could be affected:
- Screenwriting for expected top-grossing theatrical films
- Writing for episodic television and streaming series
- Overall deals that pay writers to develop projects for a studio
The union argues that fewer studios competing for writers could reduce pay, weaken contract terms and leave fewer places to pitch new projects. It also says the merged company could produce fewer films and series.
That last claim matters to viewers. If fewer projects are ordered, streaming subscribers may eventually receive less original programming. The WGA also argues that a more concentrated market could favor familiar franchises over smaller, original or less conventional stories.
Paramount disputes that outcome. The company has promised to maintain both film studios.