Writers Guild and 12 states sue to block $110bn Paramount-Warner Bros. merger

The lawsuit

On Tuesday, July 14, the Writers Guild of America East and West filed a joint antitrust lawsuit in the U.S. District Court for the Northern District of California, aiming to block Paramount Skydance's proposed acquisition of Warner Bros. Discovery. The complaint argues the merger would violate federal law by reducing competition for screenwriting services, ultimately suppressing wages and limiting employment for writers. The WGA contends that the combined entity would become the largest buyer of original film and television programming in the United States. The suit focuses on three specific markets: anticipated top-grossing films, episodic television and streaming series, and overall deals. The move comes just one day after a coalition of 12 state attorneys general, led by California's Rob Bonta, filed their own challenge.

State opposition and legal strategy

The states' suit, lodged on Monday in the same district, argues the merger would raise prices for consumers and shrink entertainment output. The attorneys general are seeking a temporary restraining order and an injunction to prevent the deal from closing. On Monday, California moved to relate its case to a pre-existing lawsuit brought by Paramount+ subscribers in April, which also alleges anticompetitive harm. That subscriber case is assigned to Judge Araceli Martinez-Olguin, a Biden appointee in Oakland. Paramount agreed on Tuesday to link the cases, likely ensuring Martinez-Olguin will oversee both the states' and subscribers' challenges. Bonta welcomed the arrangement, telling a podcast:

The fact that the judge is already up to speed, is thinking about this, thinking about its impacts — we like that.

The writers' argument

The WGA's complaint alleges that consolidation has repeatedly harmed the industry, pointing to the 2022 Warner Bros.-Discovery merger and the 2025 Paramount-Skydance deal, both followed by layoffs and cost-cutting. The union warns that fewer buyers will allow the merged studio to suppress compensation and erode deal terms. WGA West President Michele Mulroney said the merged firm would dominate film and TV purchasing.

This would eliminate competition in an already consolidated industry, threatening the livelihoods of entertainment workers and the creative diversity of TV and film.

WGA East President Tom Fontana praised the state attorneys general for enforcing antitrust laws and said the merger must be blocked.

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.

Courtroom dynamics

The case will likely land before Judge Martinez-Olguin, who is already set to hold a hearing on Thursday, July 16, on the subscribers' motion for a preliminary injunction and Paramount's motion to dismiss. She has a background in immigrant rights and civil liberties. Meanwhile, the states' suit was initially randomly assigned to Judge P. Casey Pitts, a former WGA attorney who represented the guild in its 2019 packaging-fee fight, but the case is expected to be transferred. Pitts oversees another high-profile antitrust challenge, the states' bid to block the Hewlett Packard Enterprises–Juniper Networks merger. Paramount's legal team declined to comment on Tuesday.

What's at stake

The merger, valued at $110 billion by most outlets but reported as $81 billion by The Wall Street Journal, received federal antitrust approval from the Department of Justice in June. That approval does not shield the deal from state or private challenges. With the WGA now joining the fray alongside a dozen states, the combined opposition raises the prospect of a lengthy court battle that could delay or derail one of the largest media consolidations in recent memory. The outcome could reshape the bargaining landscape for thousands of writers and set a benchmark for future entertainment mergers.