State attorneys general may still challenge Paramount Skydance’s $110 billion acquisition of Warner Bros. Discovery even after the U.S. Justice Department cleared the deal. The DOJ’s Antitrust Division closed its investigation on June 12, finding that the transaction is not likely to harm competition or consumers in streaming video, linear television, or theatrical film development, production, and distribution.
California Attorney General Rob Bonta said after the DOJ decision that the merger “is not a done deal” and remains under investigation by his office. New York Attorney General Letitia James’ office is also probing the transaction, according to NBC News, and other states have reportedly been involved in reviewing the deal.
The potential state challenge would focus on whether the merger could reduce competition across Hollywood by combining two major studios, streaming platforms, news networks, and television assets. More than 5,500 actors, directors, producers, and screenwriters have signed an open letter opposing the deal, citing concerns about fewer buyers for film and television projects, reduced jobs, and higher costs for consumers.
The DOJ reached the opposite conclusion after what it described as an eight-month investigation involving more than two million documents, data productions, depositions, and input from third parties. The department said the combined company could increase competition by creating a stronger alternative to larger streaming platforms and found no likely harm in linear television or theatrical film markets.
State attorneys general can still bring their own antitrust lawsuit even when federal regulators decline to block a merger. Legal observers told NBC News that states could seek an injunction to stop the transaction or use information requests and targeted reviews to slow the deal.
Paramount has defended the merger as pro-competitive, arguing that the combined company would be better positioned to compete against large technology platforms. The company is also facing timing pressure, with a ticking fee owed to Warner shareholders if the deal is not completed by September 30.
