July 13, 2026, 8:42 p.mJuly 13, 2026, 8:42 p.m
Twelve US states are going to court to prevent the takeover of Hollywood veteran Warner Brothers by its competitor Paramount. The merger of the two heavyweights will, among other things, result in higher prices and fewer films and TV shows, criticized California Attorney General Rob Bonta.
The US government had previously approved the billion-dollar deal without any conditions. The Justice Department concluded that the merger would not harm competition or US consumers – both in the TV or streaming business and in film production.
According to the Wall Street Journal, the takeover was waved through by the ministry’s leadership before the authority’s responsible lawyers could make a recommendation.
Worry about cinemas
In their lawsuit, the twelve US states argue, among other things, that the loss of competition between Warner and Paramount will hit cinemas hard, among other things. The deal violates competition rules and must be prohibited.
Investors were unimpressed by the lawsuit: Warner shares were up a good two percent after the federal states’ initiative. At the same time, competition tests are still ongoing outside the USA, including in Europe.
Trump supporters beat out Netflix
Paramount is backed by the family of software billionaire Larry Ellison, who is known as a supporter of US President Donald Trump. Netflix originally agreed with Warner last year to purchase the streaming and studio business of the industry leader.
But Paramount didn’t let up and made a higher bid for the entire Warner Bros. Discovery group, including television channels like CNN. The deal is now worth around $111 billion.
Trump critics in the US fear that the news channel CNN could lose editorial independence under the Paramount umbrella – as has happened in other cases where media companies were taken over by billionaires loyal to the president. Trump has said several times that it is particularly important to him that the news channel, which often reports critically about him, also changes ownership in a Warner deal.
After the Ellison family took over, the newsroom at Paramount’s CBS network stood out for its friendlier coverage of Trump’s administration. Some correspondents on the popular reportage program “60 Minutes” were fired, some of whom complained about politicized pressure.
Paramount wants more weight
Paramount is run by Larry Ellison’s son – film producer David Ellison. He wants to gain weight in Hollywood by taking over Warner Bros. Discovery. Paramount is among the smaller players in the industry.
Warner includes, among other things, the DC superhero universe with Superman and Batman, film series such as “Harry Potter” and a strong streaming business based on the pay channel HBO. (hkl/sda)