State AGs Sue To Block $110B Paramount Skydance-WBD Merger Amid DOJ Inaction
In-house counsel overseeing large pending media or cross-sector mergers must account for new state-level antitrust enforcement risk, as state AGs are unilaterally moving to block multi-billion dollar deals when federal DOJ declines to act.
Twelve state attorneys general filed suit to block Paramount Global’s $110 billion merger with Skydance Media and Warner Bros. Discovery, a rare instance of state-led merger enforcement amid reported DOJ inactivity on the transaction. The action signals a shift in antitrust enforcement strategy, with state AGs filling perceived gaps in federal oversight of large media and cross-sector deals. In-house counsel should update merger risk assessment protocols to include state AG enforcement likelihood, conduct targeted state-specific regulatory reviews for pending transactions, and build contingency plans for potential state-led injunctions that could delay or derail deal timelines.