Published on
06/06/2026 at 09:04
Updated on
06/06/2026 at 09:05
A billion-dollar dispute involving Warner Bros. Discovery, Paramount Skydance, Netflix, CNN, HBO, and Hollywood has gained momentum in the United States after American states prepared a lawsuit against the purchase of Warner by Paramount.
According to Reuters, on June 5, 2026, California and New York are among the states that are organizing the lawsuit to try to block the operation valued at US$ 110 billion, about R$ 563 billion at the current exchange rate.
The lawsuit is expected to be filed in the coming weeks, according to sources heard by the agency. Therefore, the case could mark a significant offensive by the states in enforcing antitrust laws in the United States.
State investigation increases pressure on Paramount
The possible lawsuit occurs during the analysis of the effects of the operation on the media, streaming, TV, and cinema market.
According to Reuters, it is still unclear which other states will join the lawsuit. The office of California Attorney General, Rob Bonta, confirmed that the investigation is ongoing.
Paramount claims that the deal would increase competition. Furthermore, the company argues that blocking the purchase would give an unfair advantage to established companies like Netflix.
A spokesperson for Paramount stated that the company will continue to fight any attempt to block a deal that, according to them, benefits consumers, creators, and the industry.
Market reacts to the risk of blockage
After the Reuters report, shares of Warner Bros. Discovery fell 3.6% on Friday afternoon.
At the same time, Paramount’s shares extended losses and dropped 6.7%. Thus, Wall Street began to pay more attention to the regulatory risks of the deal.
Analysts believe that Paramount could find a more favorable path with federal agencies. Part of this perception involves the political connections of the Ellison family.
The CEO of Paramount, David Ellison, is the son of Larry Ellison, billionaire and co-founder of Oracle, who maintains connections with President Donald Trump.
The battle for Warner began in December 2025, when Netflix closed a deal to buy part of the company’s assets.
At that time, the proposal focused on studio and streaming businesses. After that, Paramount made a competing offer to acquire the entire company.
Paramount’s proposal offers $31 per share and includes Warner’s debt. Additionally, the company offered a higher penalty if regulatory authorities block the transaction.
Netflix’s offer totaled $83 billion and did not include assets like CNN and Discovery.
Hollywood Sees Jobs and Brands at Stake
The proposed transaction faces resistance from actors, writers, and other Hollywood professionals due to the risk of job elimination.
The operation would bring together some of the most enduring entertainment franchises. Therefore, Hollywood and Wall Street are closely watching the deal.
If the purchase goes through, the Ellison family will control important American journalism brands, such as CBS News, 60 Minutes, and CNN.
At the same time, Paramount would expand its subscriber base and strengthen its presence in cinema, TV, and digital platforms.
What’s at Stake in Streaming
The impact of the operation goes beyond the billion-dollar value. After all, Warner holds valuable brands, while Paramount seeks scale to compete with Netflix and Disney.
Paramount’s offer includes the entire Warner Bros. Discovery group, with CNN, HBO, and cable TV networks.
Analysts assess that the move could create a group with a more robust catalog, greater bargaining power, and more resources for content production.
Meanwhile, American states are trying to take the lead in antitrust oversight. Will Paramount’s billion-dollar purchase of Warner be able to advance even under judicial pressure?
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