Federal Communications Commission Chairman Brendan Carr expressed skepticism on July 15, 2026, regarding the likelihood of success for a coalition of 12 states, led by California, in blocking the merger between Paramount Skydance and Warner Bros. Discovery. California Attorney General Rob Bonta filed an antitrust lawsuit asking a federal court in San Francisco for a preliminary injunction to prevent the merger from closing while litigation is ongoing. Bonta also requested a temporary restraining order for 14 days to pause the deal during the court's consideration of the broader injunction request.
Carr characterized the legal challenge as not a "legitimate" effort, noting that Bonta had previously suggested that the lawsuit could be dropped if the merger included a condition for Paramount to divest CNN. Carr questioned the antitrust implications of such a condition, stating, "I don’t understand what antitrust theory you have that says there’s a problem with this acquisition that is made or broken based on one cable channel being included."
Bonta, however, denied any interest in a CNN divestiture, calling the speculation unfounded. The FCC is currently reviewing foreign investments related to the merger, which is valued at $110 billion, the largest in Hollywood history. Paramount is seeking approval to increase foreign equity in the merger to 49.5%, with significant investments from sovereign wealth funds in Saudi Arabia, Qatar, and the UAE.
The lawsuit does not mention foreign investments, although this has raised concerns among some Democratic lawmakers. The case has been assigned to U.S. District Judge P. Casey Pitts, who will hold a hearing on Bonta’s motion for a temporary restraining order. The plaintiffs are seeking a decision by July 22, the date by which Paramount hopes to finalize the merger. If the merger is delayed, Paramount could incur costs of approximately $650 million per quarter.
Paramount has stated its intention to defend the merger in court, arguing that the lawsuit reflects a flawed application of antitrust laws. The company filed an emergency motion seeking Judge Pitts's recusal from the case, which would be reassigned to another judge. Additionally, a separate lawsuit has been filed by the Writers Guild of America to block the merger, with the presiding judge considering whether to relate all three pending cases.