Paramount's $111B Warner Bros. Discovery deal faces major legal challenges
Paramount's huge plan to buy Warner Bros. Discovery for $111 billion just ran into serious trouble.
Earlier this week, attorneys general from 12 states (including California and New York) filed an antitrust lawsuit, saying the merger would hurt consumers and limit competition in streaming and entertainment.
The Writers Guild of America also jumped in with its own lawsuit, worried about fewer movies and shows, and lower pay for writers.
Investors sue CEO David Ellison
Paramount insists the merger would actually mean more content for viewers, pointing to Disney and Universal as proof there's still plenty of competition.
But some investors are suing CEO David Ellison over alleged shady deals with the Trump administration, like $16 million in settlement payments and $20 million in free, pro-conservative advertising and promises to change CNN to make this merger happen.
Meanwhile, Paramount+ subscribers are anxious about possible price hikes or fewer viewing options.
A judge is expected to decide by July 22 if the deal should be paused; if Paramount misses a September 30 deadline to close it, it could face fines.