Minnesota joins suit to block Paramount-Warner Bros. deal

In Brief

• Deal valued at $110 billion to combine Paramount and Warner Bros.
• Lawsuit filed in federal district court in Northern California.
• States allege violation of Section 7 of Clayton Antitrust Act.

A group of 12 states led by Democratic attorneys general, including Minnesota, on Monday sued to block Paramount Skydance‘s $110 billion deal to buy Warner Bros. Discovery, the sharpest challenge to one of the biggest media and entertainment mergers in history.

The purchase would combine some of the biggest names in film, television, streaming and news, including CNN. Warner Bros. shareholders and the U.S. Justice Department have already blessed the deal, but opponents are hopeful that opposition from states or overseas could still upend it.

The lawsuit, whose plaintiffs include Minnesota Attorney General Keith Ellison, California Attorney General Rob Bonta and New York Attorney General Letitia James, was filed in federal district court in Northern California on Monday. The states allege that the deal violates federal antitrust law, specifically Section 7 of the Clayton Antitrust Act, which prohibits mergers that reduce competition and create monopolies.

“This merger would destroy … competition, creating a massive company with unprecedented power and influence over news and entertainment across the globe. Paramount’s acquisition of Warner Bros. threatens to raise costs for consumers and put jobs and businesses nationwide at risk,” James said in a statement.

Bonta said in a statement that the deal would lead to “higher prices, lower quality, and less content for film and television, harming movie theaters, basic cable distributors, and ultimately, audiences on every sofa and movie theater seat in the U.S.”

Arizona, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, Oregon and Washington joined California and New York in the lawsuit.

Paramount Skydance and Warner Bros. Discovery did not immediately respond to a request for comment.

If the deal closes, it would fundamentally reshape Hollywood, combining the storied Paramount and Warner Bros. film and television studios, TV news giants CNN and CBS News, and streaming services HBO Max and Paramount+.

The merger would also put David Ellison, son of billionaire Oracle founder and Larry Ellison, an ally of President Donald Trump, in charge of one of the most powerful companies in news and entertainment.

The states’ lawsuit isn’t the first to try to thwart the deal.

A group of consumers previously sued to block the merger, and that litigation is ongoing in federal district court in Northern California. British regulators also are considering efforts to intervene, though it’s unclear whether they can fully block the deal.

David Ellison’s accumulation of media muscle during the second Trump administration has led to an outcry, with critics alleging that the administration is changing the media landscape by allowing its political allies excessive consolidation.

The Wall Street Journal reported in June that senior leadership at the Justice Department closed the department’s investigation into the Paramount deal before career lawyers in the antitrust division, who had concerns about ramifications for competition, could object. The department’s outgoing antitrust chief later told Politico that was “just not accurate.”

After taking over Paramount last summer, the younger Ellison bought the Free Press, a commentary website started by opinion journalist Bari Weiss, and installed Weiss as CBS News’s editor in chief. Weiss has courted controversy by clashing with staff, overseeing layoffs, and firing key correspondents and producers at the legendary “60 Minutes” broadcast.

Three of those correspondents – Sharyn Alfonsi, Cecilia Vega and Scott Pelley – have alleged that Weiss has interfered with stories in ways that would benefit the Trump administration, allegations the network has strenuously denied.

The show’s remaining correspondents gave Weiss an ultimatum that if she interferes with the independence of “60 Minutes,” they will depart. “If we can continue doing the work that made this show what it is – committing acts of independent, fearless journalism and storytelling – we’re here for it. If not, we leave,” they wrote.

Hollywood’s unions and some of its biggest stars also have opposed the deal, including actor Ben Stiller, director Sofia Coppola and “Breaking Bad” creator Vince Gilligan, who – along with more than 5,600 others – signed an open letter, which claims that the deal would further consolidate the entertainment industry and harm workers.

“Media consolidation has already weakened one of America’s most vital global industries – one that has long shaped culture and connected people around the world,” reads the open letter, organized by the group Block the Merger.

Warner Bros., led by CEO and President David Zaslav, originally struck a deal to sell most of the company to Netflix over Paramount Skydance. The Netflix deal would have seen Warner Bros. spin off CNN and other cable TV assets into a new stand-alone company. Instead of giving up its months-long pursuit, Paramount Skydance submitted unsolicited, or hostile, bids to Warner Bros. shareholders for the entire company, including CNN.

In February, Netflix said it would not raise its bid further, and Warner Bros. instead entered an agreement to sell itself in full to Paramount Skydance.

Since then, there has been a frenzy of industry speculation about whether Weiss will lead CNN when it is under the same roof as CBS News, or whether Ellison will keep CNN’s well-respected chairman and CEO, Mark Thompson, at the helm. It’s an especially interesting question for Trump, who has feuded for more than a decade with CNN and its journalists.

Concluding a Sunday phone interview with Trump about the death of Sen. Lindsey Graham (R-South Carolina), CNN anchor Jake Tapper asked the president to return soon and answer additional questions.

“Sure, we’ll do that. We’ll do that. We’re trying to have CNN go on a normal path, and we’ll do that,” Trump said.

Tapper responded: “Well, I’m on a normal path right here, sir, and I appreciate your time, and thank you for calling in.”

“Good. You are,” Trump said.