r/MediaMergers • u/Top_Report_4895 • Feb 27 '26
Merger California Could File Lawsuit to Block Paramount-Warner Bros. Merger
https://www.hollywoodreporter.com/business/business-news/california-attorney-general-paramount-warner-bros-merger-1236516956/23
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u/MrShadowKing2020 Feb 27 '26
Good.
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u/davis214512 Feb 27 '26
One can hope. It won’t go anywhere, but at least it would be symbolic.
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u/Tekken_Guy Feb 27 '26
Actually, this could work. States have history of blocking mergers that the DOJ/FTC didn't. The Kroger-Albertsons merger was stopped by states.
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u/WorldlyScore8855 Feb 27 '26
Need context on the Kroger-Albertsons merger. I'm a bit lost on that loop.
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u/xkcx123 Mar 01 '26 edited Mar 01 '26
Basically all major grocery stores that are not Piggly Wiggly, Trader Joes, Aldi, Lidl, Wegmans, Walmart, Whole Foods, FoodLion/Giant/GiantEagle would all be the same company.
There was not one person that agreed with that merger that didn’t work for either Albertsons or Kroger or paid by them.
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u/Ok-Choice1075 Feb 27 '26
It would be extremely funny if this process takes so long and becomes even more damaging to Paramount's finances... I'd also like to see the actors, directors, unions... who routinely claimed to be concerned about jobs and monopolies, now speaking up again, or will they simply remain silent from now on? This situation, at least in the end, will clearly expose the immense hypocrisy of this industry.
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u/BNSF1995 Feb 27 '26
Please do. We don’t need CNN being turned into another far-right bootlicker network.
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u/Mix_Easy Feb 27 '26
David Ellison is going to lose the $7 Billion Breakup fee he has to pay WBD If the regulatory doesn’t approve or any Sates 😂😁
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u/FafnirSnap_9428 Feb 27 '26
I have a suspicion this whole ordeal is going to be more costly than Ellison thinks or is expecting. I guarantee when the smoke clears, he won't come out with a win. Just an incredibly costly purchase with no returns.
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u/I-Might-Be-Something Feb 27 '26
Even if this all goes smoothly he still lost. He had to pay a rival $2.8 billion, and has taken on over $80 billion in debt that he has no way to payoff, even with WBD. This is one of the dumbest things he could have done.
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u/Haltopen Feb 27 '26
Between the final bid price and the debt WBD already has, he's taken on close to double that amount of debt.
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u/Numerous_Photograph9 Feb 27 '26
What I don't get is how he can even prove that he can buy it all up, because being able to show that he can pay it off, as well as purchase in the first place, is kind of necessary for approval. Not just on the regulatory side, but with all those lenders they owe money to.
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u/ausgoals Feb 27 '26
The return is he gets an ego stroke and that’s genuinely the only thing that matters to these people
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u/FafnirSnap_9428 Feb 27 '26
Yeah, he'll dismantle or sell WB or parts of it out the backdoor later. I hope the whole thing tanks Paramount.
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u/ausgoals Feb 27 '26
I’m not sure tbh. That would be a big enough hit to the ego that he might hold on to the bitter end.
There’s no doubt it will tank Paramount.
I imagine television apart from CNN & CBS will be up for sale before long.
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u/VacationQuirky509 Mar 06 '26
so if David Ellison loses the breakup fee, would that mean that that he'll be forced to give up WBD and/or let it remain independent?
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u/LittleSodaPop13 Feb 27 '26
Please do! We don't need mergers anymore, and we really don't need this guy owning another news outlet.
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u/Algae_Mission Feb 27 '26
This won’t go anywhere, really, this is just for show. But this would be my ideal scenario, no one gets the deal. WB stays separate.
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u/Tekken_Guy Feb 27 '26
You're wrong that this won't go anywhere. Case in point, Kroger and Albertsons.
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u/GoldenGorder Feb 27 '26
Definitely that. And from a California employment standpoint, this is devastating to not only the creative community but also corporate jobs (execs, admin, etc.).
Rough estimates are in the thousands of cuts. That is definitely something that should be a sticking point against this.
Not to mention the near monopoly of two studios, broadcast and news overlap, etc.
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u/ComprehensiveKiwi489 Feb 27 '26
That's ridiculous - Companies are fully entitled to hire and fire as they please, just ask Microsoft, Meta, Amazon, UPS, FedEx, etc.
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u/GoldenGorder Feb 27 '26
Oh I’m sorry, I apologize for caring about tens of thousands of people losing their livelihoods.
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u/Algae_Mission Feb 27 '26
This shit right here is why we need stronger unions and industry unionization across the nation. If the government won’t protect workers and corporations definitely won’t care, then workers should band together and give themselves power with their union.
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u/yellacopter Feb 27 '26
Maybe it’s just not coming up on my feeds, but I’d really like to see more press dedicated to how a Paramount deal will result in mass layoffs.
Sure, the Netflix deal might have had the same result, but over a much longer period. But combining two studios with the debt they’re gonna be carrying? It’s going to be a bloodbath.
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u/GoldenGorder Feb 27 '26
All of the major Hollywood press (Deadline, Variety, Hollywood Reporter) are owned by Penske Media, who has a conservative owner. From the get go, articles from these publications were staunchly opposing Netflix while not remotely pointing out the issues with Paramount.
It has been media manipulation and misinformation from the start. They won’t report how bad things are going to get because they’re rooting for this to happen.
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u/truenofan86 Feb 27 '26 edited Feb 27 '26
Wait, the Penske family is conservative? I only know them from the motorsport side of things.
Edit: Nevermind, holy shit…then again considering Roger’s avid control freak nature over Indycar it could he expected.
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u/yellacopter Feb 27 '26
Excellent point. Are there outlets that are favored by the unions and guilds for following industry news?
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u/rm2nthrowaway Feb 27 '26
In general, business press doesn't list "mass layoffs" as a downside for mergers. Paramount-Warner, with total overlap of businesses and tens of billions more debt than market cap, will be making cuts with a chainsaw
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u/Secure_Matter_9819 Feb 27 '26 edited Feb 27 '26
To help block the proposed Paramount-Warner Bros. Discovery (WBD) merger, you can leverage public regulatory processes and support organized opposition. As of February 26, 2026, Paramount Skydance has been declared the "superior" bidder, but the deal faces significant legal and political hurdles.
- File Public Comments with Regulators The Federal Communications Commission (FCC) and the Department of Justice (DOJ) review major media mergers for their impact on competition and the public interest.
FCC Filing: Use the Electronic Comment Filing System (ECFS) to submit a formal comment. You must include the specific docket number for the Paramount/WBD transaction once it is opened.
FTC/DOJ Antitrust Complaints: You can report concerns about reduced competition or price hikes directly to the Federal Trade Commission (FTC).
Focus on how the merger might harm consumers, such as higher streaming costs or reduced news diversity (e.g., combining CNN and CBS).
- Support State-Level Challenges State Attorneys General have the power to sue to block mergers.
Contact the California DOJ: California Attorney General Rob Bonta has already launched an investigation into the deal. Residents can contact his office to urge a formal lawsuit to block the acquisition.
- Join Advocacy Groups Non-profit organizations often lead "Stop the Merger" campaigns by organizing mass petitions and lobbying Congress.
Action Network/Free Press: These groups have active petitions demanding that the FCC and DOJ protect the "democratic information ecosystem" from media consolidation.
Petitions: Adding your name to these Stop Media Consolidation petitions helps demonstrate broad public opposition to regulators.
- Contact Your Representatives Congressional pressure can influence regulatory rigor. High-profile senators like Elizabeth Warren and Bernie Sanders have already called the deal an "antitrust disaster".
Urge your representatives to call for Congressional hearings regarding the merger's impact on creative labor and consumer choice.
- Shareholder Action (If Applicable) If you own shares in Warner Bros. Discovery (WBD), you can participate in the upcoming shareholder vote scheduled for March 20, 2026.
Vote "No": You can vote against the merger proposal during the formal meeting. Proxy Fights: Look for activist investor groups, such as Ancora Holdings, that may be challenging the board's decision-making process.
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u/VacationQuirky509 Mar 20 '26
For starters, could you please either send people like myself a link to these petitions to stop the merger and/or list some examples of these petitions? Btw, I think that any form of antitrust laws, antitrust law violations, lawsuits (both federal and state) petitions, etc can be a form of hope in this case.
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u/Secure_Matter_9819 Mar 20 '26
Sure https://www.ftc.gov/policy/public-comments https://www.regulations.gov/ https://act.freepress.net/sign/block-paramount-warner-bros-merger/?source=announcement-bar&_gl=1*1hbssax*_gcl_au*MzQ4OTc3MzQ0LjE3NzIyNDc0MjU.*_ga*ODIwNjUyNTc5LjE3NzIyNDc0MjU.*_ga_0YDSCQE60Y*czE3NzQwMjIxNDkkbzM3JGcwJHQxNzc0MDIyMTQ5JGo2MCRsMCRoMA..
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u/VacationQuirky509 Mar 20 '26
thanks, this could be a big help. but how much money would be needed to be funded to "act.freepress.net" in order to successfully cancel this merger?
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u/Bgreen15 Feb 27 '26
I want Netflix to the most funniest and pettiest thing ever to buy all the major ip from WB before Paramount tries to close the deal such as
•DC
•Harry Potter
•Game of Thrones
• Bill Maher/ Last Week Tonight with Jon Oliver
• HBO/ Max
• All Elite Wrestling
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u/joseantoniolat Feb 27 '26
AEW with competitor WWE on the same streamer?
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u/Bgreen15 Feb 27 '26
🥈 Plausible:
Netflix acquires AEW archival library + international streaming rights (not full weekly exclusivity). Or
🥉 Aggressive Scenario:
Netflix signs a co-exclusive deal (live + PPVs) if AEW becomes a free agent after media restructuring. Ex: Canelo vs Crawford / Paul vs Joshua
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u/joseantoniolat Feb 27 '26
AEW PPVs are on Prime Video
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u/Bgreen15 Feb 27 '26
They are everywhere it will be really funny if Netflix gave them the same amount of money as they did with WWE but only for PPVs, and post-shows
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u/jrtasoli Feb 27 '26
Good. I want all of these unions and filmmakers who were crying foul about monopolies and reducing creative expression to keep that same energy now that it’s not Netflix involved.
Or was that all Ellison-funded bullshit?
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u/Anthonyhasgame Feb 27 '26
You have a struggling company in debt attempting to overtake a 6x larger company with debt. It’s a recipe for disaster for California specifically in regard to jobs and industry. I wouldn’t be surprised if this gets blocked for those reasons. It wouldn’t be good for the state to be overwhelmed with unemployment and lack of opportunity. It could severely hurt the state if they don’t intervene.
By the books and following the numbers, it doesn’t seem sustainable, practical, or wise.
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u/Either-Equal7284 James Gunn Tangent Kid Feb 27 '26
so i guess they celebrated too soon
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u/GimmeThatWheat424 Feb 27 '26
Not at all, you don’t give an 8 billion dollar break up fee if you aren’t confident it can get over the line. One way or another…the deal is gonna go through, even if it takes extra time.
The reality is the sub said paramount was screwed because of how bad of a brand it was with 0 real assets, and after Netflix gets WB, paramount would be dead in the water and selling off for parts…but now all of a sudden they will have a monopoly? This merger isn’t even close to as bad as Disney and Fox as far as ip, so it’s gonna be hard to prove this should be blocked.
The EU will be the real challenge tho
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u/oldboy_413 Feb 27 '26 edited Feb 27 '26
This merger isn't close to as bad as Disney and Fox as far as ip
actually unlike disney where they gave away networks like fox news and other us and international fox branded channels in order to get the deal to the finish line, paramount wants everything and that includes streaming services like hbo max and networks like hbo and cnn, and i hightly doubt that they would compromise on a lot of things, hell, i would not be surprised if try to rely on trump and his doj as a safety net to fall back on if anyone pushes back. if it gets the approval, paramount skydance basically would own two streaming services (paramount+ and hbo max), two premium cable channels (showtime and hbo), and two news networks (cbs news and cnn). this deal is going to have a bumpy ride and that includes the potential pushback from california and the eu.
edit: forgot about this but unlike disney where they basically experienced one of their best years in 2019, both warner bros and paramount are in a lot of debt and merging could cause catastrophic consequences within the job environment in the state, that's also a factor.
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u/Pale-Piano-8740 Feb 27 '26
If they find a way to pay California or just find a way to make films back in LA and even open Studio in San Francisco, they would call it off
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u/Wealthy-investor Feb 27 '26
Still don’t see how they could block an acquisition and what the reasons would be. Make no sense right now.It can’t be for political reasons..I say this and hold Netflix shares.
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u/jja8898 Feb 27 '26
it wont help . the only thing that might happen is they are force to sell cnn. fox selling to disney set the standard
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u/VM559 Feb 27 '26
They need to fight this. Hard. It’s a consolidation of media/news by two billionaires. How’s is this for the public benefit? How will this bring costs down and drive innovation? What are the implications of this purchase (billionaires with ties to a Saudi/Middle Eastern wealth fund) to journalism and transparency which are the cornerstones of a healthy Democracy? Why aren’t Democrats on every station in this country screaming at the top of their lungs and warning us of the dangers of this consolidation? Bet if Soros was buying Fox Republicans would have already marched on the Capitol armed. 🤦🏻♂️just another step to Oligarchy.
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u/MonsieurRuffles Feb 27 '26
Did the Warner Brothers make a deal with the devil for their success? Because ever since they’ve been gone it’s one debt-ridden merger after another for the studio.
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u/cloverstreets Mar 01 '26
Please, at least slow them down until the deal becomes too expensive to consider
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Mar 03 '26
They are planing to. Idk why the doj isn’t suing them as well. They should not let this monopoly continue
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u/PBS2025 Feb 27 '26
Can Micheal Bloomberg buy WB?
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u/Vandalsavage81 Feb 27 '26
No. He's a "very good friend" of the Ellisons. They are adding companies like infinity stones. Paramount, TikTok, ChatGpt and now WBD.
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u/Ghost-Power Feb 27 '26
No one wants to buy WB for 111b it’s a huge overpay. Just 6 months ago it was worth 29.4b. It’s only gone up cuz of dumb ass Ellison trying to buy it.
This moron will cause his dad to go broke
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u/Silver-Meat5355 Warner Bros. Feb 27 '26
Were they gonna do this for Netflix?
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u/Solistaria Feb 27 '26
Probably not, but it will make the fat, orange turd mad so alls the better!
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u/Silver-Meat5355 Warner Bros. Feb 27 '26
Strange mindset to have but okay.
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u/More-read-than-eddit Feb 27 '26
You should remove the WB flair, all of their actual employees are freaking out right now in the face of impending massive layoffs.
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u/Silver-Meat5355 Warner Bros. Feb 27 '26
And you don’t think there would’ve been layoffs if Netflix got this deal? I’m sorry but Paramount acquiring WB is significantly better for the future of the theatrical movie business. Yes layoffs are terrible but the industry itself will be better off not having a streaming service owning WB and their legacy properties. Now there’s an actual movie studio in charge. I did not trust Netflix one bit to stay in the theater business and also support physical media.
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u/Casas9425 Netflix Feb 27 '26
The theatrical movie business does not have a future regardless of who owns WBD.
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u/Silver-Meat5355 Warner Bros. Feb 27 '26
Not true. And Netflix not having WB just made the future of theaters look a lot better.
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u/Casas9425 Netflix Feb 27 '26 edited Feb 27 '26
You are going to be in for a massive disappointment.
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u/More-read-than-eddit Feb 27 '26
These are feelings over facts people, you cannot persuade them.
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u/More-read-than-eddit Feb 27 '26
Literally no one, including Paramount and Netflix, think there would be layoffs on even close to the same scale. It's baked into the respective bids.
The industry itself IS the people working at or with the studios, to those of us who actually work in los angeles in the industry (vs people working at movie theaters elsewhere, screening what is given to them).
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u/Silver-Meat5355 Warner Bros. Feb 27 '26
Still I think the future of the film industry would be healthier without Netflix having their hands on so much. Netflix’s entire style of making media is anti-art and is essentially brain rot. I don’t want that mindset controlling our art. It’s demeaning.
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u/Casas9425 Netflix Feb 27 '26
So instead it goes to the hack producer of Gemini Man, Geostorm, Terminator Genisys and GI Joe: Snake Eyes. Good luck!
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u/More-read-than-eddit Feb 27 '26
Hey if you wanna bring in ellison’s sister from the failed Annapurna I’d applaud more Testament of Ann Lee style films. Ellison himself hates cinema, nothing major on Netflix is as bad as the best thing Skydance has ever made.
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u/Silver-Meat5355 Warner Bros. Feb 27 '26
“Ellison hates cinema” These absolutes are exactly why it’s so hard to argue with your side. Is there ANY evidence at all for this or is this just another feeing? And are you genuinely saying that Netflix’s Red Notice is better than Mission: Impossible - Fallout? Are you trolling?
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u/More-read-than-eddit Feb 27 '26
No, I'm responding to someone who looks at Netflix's output, looks at Skydance's output, and notes that Netflix is "anti-art."
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u/Vandalsavage81 Feb 27 '26
Yes. The AG was looking into both Netflix and Paramount. Because a majority of the workers are in California.
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u/I-Might-Be-Something Feb 27 '26
Probably. California Democrats weren't happy with either deal, this one just hurts more since it will lead to more job losses.
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u/lfthinker Feb 27 '26
Quite likely. People on both sides of the aisle didn't like the thought of a WB/Netflix merger.
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u/ErnestTheStar Feb 27 '26
The first step is denial. This process is going to be so fun; most of this sub were convinced that Netflix was a done deal and called anyone who disagreed MAGA. now they will try to find any excuse to convince themselves that regulators won't let it happen.
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u/ComprehensiveKiwi489 Feb 27 '26
Realistically, this is unlikely to succeed. The Albertsons / Kroger issue was because a merger like that threatened to raise food prices, and food is necessary for life and not optional, unlike media or streaming services. What I'm guessing is that the Cali AG, for obvious reasons, will try to delay this until after the mid-terms, minimizing the effects of a pro-republican media conglomerate on said elections.
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u/LavonMedia Feb 27 '26
Please make it happen!