In 2025, Skydance Media completed a buyout of Paramount Global. Now the combined company is pursuing a $110 billion acquisition of Warner Bros. Discovery — a deal that would merge two of the biggest entertainment conglomerates in the world under one roof. Paramount+ and Max, CBS and CNN, Paramount Pictures and Warner Bros. Pictures — all under a single owner.
Five Paramount+ subscribers filed suit in federal court on April 30, 2026, arguing the merger violates Section 7 of the Clayton Antitrust Act — the same law the DOJ used against Live Nation. Their argument: the combined company would control roughly 23.6% of the studio market, making it the single largest studio. The top four studios combined would hold about 76.3% market share — a 10.2 percentage point jump in concentration.
The plaintiffs argue consumers would face higher prices, fewer choices, lower quality programming, and a loss of independent editorial voices in national news — specifically flagging concerns about what happens to CNN when its parent company merges with a competitor.
- 01The proposed acquisition of Warner Bros. Discovery violates Section 7 of the Clayton Act by substantially lessening competition in streaming, theatrical distribution, and national television news.
- 02Post-merger, the combined entity would hold ~23.6% market share in studio output, making it the largest single studio. Top-four concentration would reach ~76.3%.
- 03Consumers would face increased prices and diminished choice across streaming platforms as competitive pressure drops.
- 04The merger threatens editorial independence and viewpoint diversity in national news by reducing the number of independent owners capable of sustaining national TV news operations.
- 05Plaintiffs seek an injunction blocking the merger and, separately, an order forcing Skydance to divest Paramount (acquired last year).
Paramount brought on Jeffrey Kessler, co-executive chair of Winston & Strawn, to lead the defense. Kessler is one of the most recognized antitrust litigators in the country — he recently led the 30+ state coalition that secured the Live Nation monopoly verdict (already on the Celebrity Dockets docket). He also won the landmark 2019 NCAA case that opened the door for college athletes to profit from their name, image, and likeness.
Kessler called the subscriber complaint “baseless” and said there is no credible antitrust case against the deal. He joins a defense team that already includes Makan Delrahim (former Trump-era antitrust chief) and David Gelfand (Obama-era DOJ antitrust official).
Paramount has said it does not expect legal challenges from the Justice Department, state prosecutors, or foreign regulators — but the subscriber suit is now active in federal court.
This is the streaming-era version of the old Hollywood studio monopoly fights. If Paramount and Warner Bros. merge, a single company would control CBS, Showtime, Paramount+, Max, HBO, CNN, Paramount Pictures, and Warner Bros. Pictures. The subscriber suit argues that kind of consolidation hurts everyone who pays for a streaming subscription. The same antitrust lawyer who just proved Live Nation is a monopoly is now defending the deal — so both sides of the Live Nation verdict are now entangled with Paramount.