In July 2026, twelve states brough suit to block the Paramount Skydance’s proposed acquisition of Warner Brothers Discovery.  The complaint alleges that the proposed transaction would harm competition in the markets in the United States for the (1) distribution of wide-release theatrical films; distribution of anticipated top-grossing theatrical films; and (3) licensing of basic cable channels to distributors.  The complaint states that the merger is presumptively anticompetitive in the each of these three markets based on the combined market share of the parties when calculating market concentration using the Herfindahl-Hirschman Index.  The plaintiff states allege that the proposed transaction violates Section 7 of the Clayton Act.

The plaintiff states sought a temporary restraining order to prevent the deal from moving forward, and the court granted the states’ motion on July 20, 2026.