A group of streaming subscribers has taken legal action to stop a massive $110 billion merger between Paramount Skydance and Warner Bros., warning it could drive up prices and shrink viewing options.
The lawsuit, filed Thursday in federal court in San Jose, comes from five individuals—three current Paramount+ users and two potential subscribers. They argue the deal would harm consumers by reducing competition across streaming platforms and movie theaters.
Paramount plans to finalize the merger in the third quarter. While federal regulators or state coalitions could still intervene, legal challenges from private citizens rarely succeed. Even so, the case could pressure companies into financial settlements if consumer harm is proven.
The complaint goes further than just blocking the Warner Bros. deal. It asks the court to force Skydance to separate from Paramount, which it acquired last year. Plaintiffs are also seeking triple damages under antitrust law, claiming the merger would limit fair competition.
“Skydance’s nontrivial acquisition of Paramount Global and the proposed nontrivial acquisition of Warner Bros. Discovery reflect the same strategy of refusing to compete by building better products, investing, innovating, or winning customers through rivalry on the merits, but instead pursuing scale through consolidation that eliminates independent rivals and weakens the competitive constraints that protect consumers,” the suit states.
The lawsuit places the deal within a broader trend of media consolidation. It points to past mergers like Disney’s acquisition of Fox and Amazon’s purchase of MGM as warning signs of a shrinking competitive landscape.
“These acquisitions show an industry moving by successive combinations toward fewer independent rivals, exactly the consolidation backdrop that heightens the competitive threat posed by the next merger, even if the combined firm remains smaller than the largest platforms,” the lawsuit states.
The plaintiffs also claim the merger could affect more than just streaming prices. They argue it may reduce the number and variety of films shown in theaters, limiting choices for moviegoers.
“Plaintiffs allege that if Paramount’s proposed acquisition of Warner Bros. Discovery is consummated, the combined firm will reduce theatrical film output and narrow release slates, leaving moviegoers with fewer theatrical titles, less genre and budget variety, and fewer meaningful alternatives at local theaters, thereby diminishing the value of the theatrical experience by making trips to the movies less likely to offer appealing options and reducing the ability to substitute among titles when a particular film is unavailable, sold out, or unappealing,” the complaint asserts.
Another claim in the lawsuit raises concerns about media independence. Plaintiffs allege Skydance sought favor with the Trump administration by agreeing to “align CBS News’s editorial posture” with the White House. They argue this move weakened journalistic credibility and reduced investigative reporting strength.
Paramount Skydance CEO David Ellison has publicly promised to expand film production if the merger proceeds. He pledged at least 30 theatrical releases each year.
The company dismissed the lawsuit outright.
“The combination of Paramount and WBD will create a stronger competitor that is well positioned to serve as a champion for creative talent and consumer choice,” a company spokesperson said. “The lawsuit is without merit.”
