A federal lawsuit filed in April by five streaming subscribers seeks to block the proposed $111 billion deal for Paramount Skydance to acquire Warner Bros. Discovery, citing antitrust concerns. The plaintiffs, comprising three current Paramount+ subscribers and two prospective subscribers, allege that the merger would lead to increased prices and reduced viewing options, seeking an injunction against the Paramount-WBD transaction and even the breakup of Skydance Media’s prior merger with Paramount Global, which concluded in August 2025. They also claim damages as consumers of news and moviegoers, further asserting that David Ellison’s Skydance curried favor with the Trump administration, agreeing to "align CBS News’s editorial posture" with the White House, thereby compromising the network's credibility and investigative independence. Concerns were also raised about a potential reduction in options for theatrical movie releases.

Paramount responded on June 3 by filing a motion to dismiss the case, vehemently arguing that the plaintiffs’ antitrust allegations lack factual support. In its filing with the U.S. District Court for the Northern District of California in Oakland, Paramount characterized the lawsuit as a "misguided attempt by Plaintiffs to politicize antitrust law." The company asserts that the merger represents a vital opportunity to "revitalize Hollywood and the industry at large by creating greater competition that benefits consumers, theaters, and workers alike."

Jeffrey Kessler, co-executive chairman of Winston Taylor and lead counsel for Paramount, echoed this sentiment, stating that the merger is aimed at "creating a stronger competitor in a rapidly evolving media landscape." He maintained that the plaintiffs have presented no evidence of competitive harm, while the record indicates the transaction will boost investment, expand content offerings, and bolster Paramount’s ability to rival the industry's largest players. A Paramount representative further elaborated in a statement, calling the lawsuit "meritless from top to bottom" and emphasizing that the proposed Paramount-WBD transaction raises no plausible antitrust concerns. The company contends that in an era of "unprecedented competitive pressure from dominant big tech companies," this combination will empower Paramount-WBD to better compete, invest, innovate, and deliver premium content globally, arguing that opposing the deal means opposing greater consumer choice, stronger theatrical exhibition, and expanded opportunities for creators and workers.

Despite Paramount's defense, the proposed deal has generated considerable backlash within the industry. More than 5,500 filmmakers, actors, and other Hollywood professionals have signed an open letter opposing it, arguing that it would eliminate jobs, raise prices, and reduce competition. Additionally, House Democrats have urged California Attorney General Rob Bonta to "closely scrutinize" the deal, with Bonta’s office indicating that legal action is being considered.

Adding to the controversy, Makan Delrahim, chief legal counsel of Paramount Skydance, stated in a Los Angeles Times interview that opponents were engaging in "fear-mongering" and a "political campaign," further alleging that some individuals attempting to harm the transaction held "antisemitic views," though he did not identify specific individuals. Paramount itself has argued that granting an injunction to block the Warner Bros. Discovery merger would cause "great harm" to the company and impede competition, imposing significant economic costs.

Paramount's primary justification for the WBD merger is to achieve the necessary scale to effectively compete with leading streaming platforms such as Netflix, Amazon Prime Video, and Disney+. The company highlighted that following its merger with Skydance, the combined entity nearly doubled its theatrical film output, with Paramount committing to release 30 feature films annually after the Warner Bros. transaction. An FCC filing in April also revealed that the merged Paramount-WBD entity would have 49.5% foreign ownership, with approximately 38.5% of the equity held by sovereign wealth funds from Saudi Arabia, Qatar, and Abu Dhabi, which collectively pledged $24 billion towards Paramount’s bid. A hearing for the case is scheduled for July 16.