# States Challenge Paramount Warner Bros. Merger

The multi-state lawsuit led by California Attorney General Rob Bonta and supported by 11 other states continues to challenge the proposed $110 billion merger between Paramount Skydance and Warner Bros. Discovery. Former FTC Chair Lina Khan has publicly opposed settlement talks, labeling the merger "facially illegal" and cautioning against reliance on behavioral remedies instead of structural changes. This legal challenge represents the final significant regulatory barrier to the merger's completion, signaling ongoing scrutiny of large media consolidations and potential impacts on procurement and contracting within the entertainment and media sectors.

- **Why this matters:** Procurement professionals should anticipate potential delays or modifications in contract awards and vendor relationships related to the merger due to ongoing litigation.
- The emphasis on structural remedies over behavioral ones may influence future merger conditions, affecting how companies approach compliance and integration.
- Organizations involved in media procurement should evaluate risks associated with vendor consolidation and regulatory challenges in large-scale mergers.
- Legal and compliance teams should monitor developments closely to adjust procurement strategies in response to possible regulatory outcomes.

**Jurisdictions:** federal
**Industries:** Professional Services
**Topics:** Regulatory Compliance
**Published:** September 20, 2026

### Government Entities
- Federal Trade Commission (FTC)
- California State Attorney General's Office

### Vendors
- Paramount Skydance (Acquirer)
- Warner Bros. Discovery (Target Company)

### Sources
- [Ex-FTC Chief Lina Khan Calls Paramount Merger 'Facially Illegal'](https://www.thewrap.com/industry-news/deals-ma/ftc-lina-khan-paramount-merger-illegal) - TheWrap