U.S. states prepare lawsuit to block Paramount's $110 billion Warner Bros deal

A group of U.S. states, including California and New York, is preparing a lawsuit to block Paramount Skydance's $110 billion acquisition of Warner Bros, according to sources familiar with the matter.

The lawsuit is expected to be filed in the coming weeks, the sources said Friday. The case would represent the most aggressive state-level antitrust enforcement action as states seek to lead in applying U.S. competition law while federal authorities have adopted a more business-friendly stance during the Trump administration.

Paramount faces a comparatively easier path to obtain approval from federal antitrust regulators, in part due to the company's political connections. David Ellison, the CEO of Paramount, is the son of a billionaire co-founder, according to sources.

The state-level challenge reflects a broader divergence in antitrust enforcement between federal and state authorities. While federal agencies have shown greater deference to major corporate transactions under the current administration, state attorneys general have positioned themselves as alternative enforcers of competition law.

Sources indicated that multiple states beyond California and New York are involved in preparing the legal challenge, though the full list of participating states was not disclosed. The filing is expected to occur within the next several weeks, according to the sources.