California's Attorney General is spearheading a multistate legal challenge against Paramount Skydance's acquisition of Warner Bros Discovery, contending the deal would produce unlawful market concentration. The combined entity would control approximately one-third of theatrical film distribution and one-third of cable television channels, with particular concern around blockbuster films—which generate 88 percent of box office revenue—where just four distributors would control over 90 percent of output.

Bonta frames the dispute as a straightforward antitrust matter where reduced competition would likely lead to higher consumer prices, diminished content quality, and fewer productions. He characterises recent pro-merger endorsements and commitments to film releases as insufficient to address the structural competitive harm he argues the merger would create. A federal court has scheduled trial for March 2027.