By Mary O’KEEFE

This week, California secured a major victory in the State of California lawsuit challenging the proposed merger between Paramount Skydance and Warner Bros. Discovery, according to Attorney General of California Rob Bonta.

Under the agreement reached, the companies can’t complete their proposed merger until next year – on June 1, 2027 – or until a court rules on the legality of the deal – whichever comes first. This ensures the merger won’t move forward before a court has the opportunity to fully consider whether the merger complies with the law, including its impact on competition and consumers, according to a statement from Bonta.

This merger would combine two of Hollywood’s biggest studios, reducing competition and potentially leading to higher prices, fewer choices and lower-quality entertainment for audiences. It could also harm movie theaters and the countless writers, artists and workers who help bring film and television to life. It would combine the nation’s second- and third-largest owners of basic cable channels – resulting in higher prices, reduced investment in content and fewer choices for cable television consumers, according to Bonta.

“California will continue fighting to protect competition, consumers and the creative industries that power out economy and enrich our communities,” according to Bonta. 

Twelve state attorneys general, including Bonta, sued to stop the $110 billion deal. If the deal were completed it would combine the two movie studios, two streaming platforms and two news organizations under the control of David Ellison. 

In addition to the 12 states, on July 14 the Writers Guild of America West (WGAW) and Writers Guild of America East filed a lawsuit to block the proposed merger. 

“With fewer competitors, the merged Paramount-Warner Bros. entity would have both the incentive and the ability to lower costs by suppressing writers’ wages and reducing output. Writers will be paid less and have fewer employment opportunities,” the WGA complaint states.

“If Paramount succeeds in buying Warner Bros., the merged firm will be the largest buyer of original film and television programming in the United States,” said WGAW President Michele Mulroney in a statement. “This would eliminate competition in an already consolidated industry, threatening the livelihoods of entertainment workers and the creative diversity of TV and film. We applaud the dozen state attorneys general who have stepped up to enforce our antitrust laws and are proud to file suit alongside them.”